Crude Oil Outlook – Crude Oil Continues to See Pressure

WTI Crude Oil Technical Analysis

The light sweet crude market has shown itself to be fairly negative during the trading session in the early hours on Thursday. But ultimately, we have a situation where the market is starting to dig into this previous consolidation area that is based on two to three years’ worth of support. So, I do think that we’re getting closer to about, so we just haven’t really seen it yet.

It’ll be interesting to see how this plays out. I think a lot of this could come down to trade tariffs, trade wars, those types of things. But right now, I still believe that you have to be looking for a buying option, not a shorting one. I mean, you’d be selling pretty late into the game. I am bullish on oil longer term, but in the short term, it’s going to be very difficult. It typically is to find your footing when you are trying to turn things around.

Brent Crude Oil Technical Analysis

Brent markets, of course, look very much the same. And in this case, we have the $70 level underneath being a bit of a floor in as we’re nowhere near there, we could fall a little bit further. But again, I’m not looking to chase the downside trade, I’m looking for the turn, we just haven’t seen it yet. I think a lot of this, like I said, comes down to tariff threats, and the idea that global trade might grind to a halt, I think it’s a little overdone.

I do believe that the inflation numbers bear out that commodities, especially crude oil, should turn around and rally eventually. But these things don’t happen at the drop of a hat.

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