Crude Oil Price Forecast – Crude Oil Continues to Build a Base

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil or light sweet crude market has fallen a bit during the trading session on Thursday in the early hours, but it looks like it is trying to find support here right around the $72.50 level. The market bouncing from here does make a certain amount of sense and if we can clear the $74 level, I think buyers will come in and try to pick this market up.

However, if we break down below the bottom of the candlesticks, then we could drop down towards the $70 level. I really don’t think at this point in time, it’s a market that is likely to breakdown significantly, but it is worth noting that the inventory’s number was a little higher than anticipated in the United States. So that might be why we are still in a bit of a bottoming process.

Brent Crude Oil Technical Analysis

Brent has a decidedly negative look to it at the $75.50 level, but it also looks like we are at least trying to stabilize here. So, I think Brent probably follows the West Texas contract going forward. One generally will lead the other, but I think we’re also in a situation where buyers are looking for value that they can take advantage of.

If we were to break down from this area, then we could go as low as $72, but I just don’t see that. I believe it is a situation where a lot of traders are looking for value. They recognize this as value and may be taking advantage of it.

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