Crude Oil Price Forecast – Crude Continues to Look Wild

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market has found itself to be negative in the early hours on Tuesday, but it is starting to show some signs of life. This is a market that I think will continue to cause a lot of problems for a lot of different people, mainly due to the fact that we don’t really understand where global demand is going to come from. The geopolitical issues in the Middle East, notwithstanding the global economy, don’t seem to be screaming higher oil prices. That doesn’t necessarily mean we can’t bounce, and I would fully expect it.

But I think what we’re looking at is a market that is just chopping back and forth looking for some type of certainty and as long as we don’t have certainty, I think you will continue to see us trade between the $67.50 level at the bottom and probably somewhere near $77 on the top.

Brent Crude Oil Technical Analysis

Brent markets of course look similar. They are recovering a little bit better than the West Texas Intermediate markets. But at this point in time, the $70 level is what you’ll be watching for a floor in the market. Keep in mind that the support in both grades of oil is based on about 20 months’ worth of action. So I think you’ve got a situation where you will have plenty of market memory. If we do rally from here though, I think that the $80 level is going to be very difficult to get above. In fact, we may have just carved out a new range in this market.

Brent loves to trade in $10 increments, and as such, trading between $70 on the bottom and $80 on the top probably makes quite a bit of sense. Currently, we are basically right dead in the middle of it, meaning that the market might be fighting some type of balance.

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