Crude Oil Weekly Price Outlook – Crude Oil Continues to Find Support

WTI Crude Oil Weekly Technical Analysis

The light sweet crude oil market has rallied a bit during the week but struggled near the $64 level. This is a market that’s been going sideways for a while, and it looks like we are paying close attention to the $60 level, extending all the way to the $62 level for significant support. All things being equal, this is a market that I think continues to see a lot of noisy sideways action as we are trying to form some type of bottom.

That being said though, if we were to break down below the $60 level, then you can see this market really start to plunge. All things being equal though, I think it’s a lack of demand and overproduction by Russia, OPEC and the United States that will continue to keep oil somewhat soft.

Brent Crude Oil Weekly Technical Analysis

Brent markets look very much the same, although the support level in Brent is clearly the $65 level. The $70 level above offers significant resistance and this too, it looks like a market that probably goes sideways for a while. I do think we’re trying to find some type of bottom. The question of course is, can we pick up enough demand to make that happen?

If the Federal Reserve starts to cut rates, it could, at least in theory, have people looking for expansion of economic activity. And that could be your positive case for oil. That being said, the market already expects the Federal Reserve to cut rates, and yet here we are. So, I think at this point we’re trying to find some type of range to trade in, with I suspect $65 being your floor.

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