Crude Oil Price Outlook – Crude Continues to Range

WTI/CL Technical Analysis

The light sweet crude oil market has fallen a bit to show signs of exhaustion and negativity again but then turned around to bounce a bit. At this point, I think we’re just hanging around in this consolidation area between the $62 level and the $65 level. So ultimately, we are just hanging around with the 50-day EMA offering resistance as well. Ultimately, I think you have a situation where crude oil is just simply trying to find some type of trading range, and I think maybe we’re in it between this $3 range pretty tight, but it seems to be holding.

Brent Technical Analysis

The Brent market is doing the same thing as it is sitting just below the 50 day EMA and it’s right in the middle of the larger consolidation area, with the $65 level offering support and the $69 level above being resistance. Ultimately, this market has been going sideways, and I think we’ve got a situation where the market is trying to sort out whether or not we are going to find enough momentum to break out, or if are we going to just simply bounce around here? I think the biggest problem that crude oil has right now is that the oversupply in the market is pretty heavy.

The United States, Russia, and OPEC are all pumping massive amounts of oil. The demand is a problem as well, because quite frankly, the global economy seems to be sputtering just a little bit. And if that’s going to end up being the case, especially with the potential tariff problems, there are a lot of reasons to think that maybe transportation may not be taking so much in the way of crude oil demand to the market. We’ll just have to wait and see.

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