Crude Oil Price Forecast – Crude Oil Continues to Build a Basing Pattern

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market has rallied a bit from the bottom as we continue to recover overall. The West Texas Intermediate Crude Oil Market will also have to deal with quite a bit of noise just above, especially near the $75 level.

The $75 level of course is a large round psychologically significant figure, but it’s also an area where we would expect to see a lot of options traders get involved. Short-term pullbacks are more likely they’re not going to be buying opportunities given enough time. However, if we were to break down below the $71.50 level, then we could go looking towards the $67.50 level which would be a significant drop but also an area where you would see significant support.

Brent Crude Oil Technical Analysis

Looking at the Brent market it’s very much the same story and it looks like we are trying to break higher, but I think you’re going to run into a bit of trouble near the 79 dollars level and of course the 80 dollars level. If we were to turn around and break down below the 75 dollars level on the downside then the $72.50 level would more likely than not end up being massive support. We are getting pretty close to the lows of the overall range and therefore I think you are starting to see a lot of value hunting coming back into the market.

Furthermore, you have to keep in mind there are still plenty of geopolitical tensions in the Middle East that keep oil somewhat elevated. On the other hand, there are a lot of growth fears out there and as long as that’s the case demand for oil could shrink and that of course will be priced into the market.

For a look at all of today’s economic events, check out our economic calendar.