Crude Oil Weekly Price Outlook – Crude Oil Shoots Higher for The Week

WTI Crude Oil Weekly Technical Analysis

The light sweet crude oil market has been extraordinarily bullish during the course of the week, piercing the $70 level, but at this point we are below it. Nonetheless, this looks like a market that is trying to carve out a summer range, but if we break above the top of the weekly candlestick, then we could go racing higher, perhaps to the $73 level. Short-term pullbacks, I think, are possible. I think short-term pullbacks certainly have the ability to see the $65 level offer significant support.

Brent Crude Oil Weekly Technical Analysis

The Brent market looks very much the same as we are testing the 50-week EMA, but gave back some of the gains. At this point, the $68 level continues to be a significant amount of support, and I think you’ve got a situation where market participants are betting on a little bit of a summer rally. But let’s keep in mind that a lot of what really got the market moving this past week is that Donald Trump has threatened Russia with more sanctions and threatened to tear off countries like India that buy their oil from Russia.

So, the idea, of course, is that maybe there’ll be some supply taken off the market. Nonetheless, this is a market that is typically a little bit more bullish than bearish this time of year. So, I still favor the upside, but whether or not we can truly break out remains to be seen. I think at this point in time, we are trying to find a definable range. That’s pretty common in oil, as it does tend to be choppy for long periods of time. When you look back at the last two and a half years or so, we’re just re-entering the same range that we’ve traded in the entire time.

For a look at all of today’s economic events, check out our economic calendar.