Crude Oil Price Forecast – Crude Oil Building a Base?

WTI Crude Oil Technical Analysis

The Light Sweet Crude Oil Market has rallied a bit during the early hours on Wednesday as we continue to see a lot of noisy trading. But at this point in time, I think really what we are doing is trying to consolidate in a bottoming pattern that has been important for some time. Because of this, I think you still have a back and forth trading environment between $65.50 and $68.50. Ultimately, the demand question for crude oil is going to be a serious problem for this market as it looks like the global economy is slowing down. However, we are at extreme lows, and one would think that there are some defenders here.

Brent Crude Oil Technical Analysis

The Brent markets, of course, look very much the same. And I think it’s possible that we could see a bit of a bounce towards the $72 level as well. Nonetheless, I don’t get overly bullish unless you have the ability to really babysit the charts, then it doesn’t make a lot of sense to trade this market at the moment. But if we break above the $72 level, that opens up the possibility of a bigger move.

Again, it’s the same problem here as we have in the light sweet crude market, people are concerned about whether or not the global economy is slowing down. So, I think you get a lot of push and pull here as traders aren’t overly positive about what to do with the current situation.

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