Crude Oil Price Outlook – Oil Plunges in Early Trading on Wednesday

WTI Crude Oil Technical Analysis

The light sweet crude oil market broke down pretty significantly in pre-market trading before the open outcry session on Wednesday, as we find ourselves well below the $60 level. That being said, I don’t expect a collapse here. I just think we’re going back and forth. We’re trying to bang around and find a range. That’s what oil does. $60, of course, is basically a magnet for price, but the 50-day EMA above will continue to offer significant headwinds to those who are trying to push oil higher.

Keep in mind that sanctions against Russia caused a bit of a jolt higher. But at the end of the day, we’ve seen that with Russia more than once, and they always seem to be able to get crude oil out into the market, so it’s not really a supply issue anymore.

Brent Technical Analysis

Brent markets have also fallen significantly, but it looks like we are trying everything we can to fill this gap, stay in the gap area from that Russian sanction announcement a couple of weeks ago, and perhaps try to find a range here as well.

Again, I think it’s probably easier in both grades of crude oil, not just the Brent grade, to fade rallies. There is a certain amount of overhang here on Brent, and I think that continues to be the main story. I have no interest in buying, at least not at the moment, and as I’m saying right now, it looks like the 50-day EMA is acting a bit like a downtrend line that keeps Brent soft.

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