Crude Oil Price Forecast – Crude Oil Continues to Look Tired

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market initially tried to rally during the trading session on Thursday, but it looks like we are running into a bit of a buzzsaw of resistance. With that being said, I’m paying close attention to the $67.50 level as a significant barrier that traders will continue to watch that I think extends to just above the $68 level.

It certainly looks like we are going to continue to see pressures on Crude as demand in China continues to drop. And of course, there are a lot of concerns about a global slowdown. So, with that, I think it remains somewhat fade the rally.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same. In this case, it’s the $71.50 level offering a bit of resistance, but I do think there’s going to be a certain amount of psychological support right around the $70 level. I don’t know if crude oil is in the process of bottoming, but we are at extremely oversold conditions, so you would expect a little bit of a fight to the upside.

If Brent can break above the $72.50 level, then I think it can really start going, but right now, this is a market that continues to struggle with the idea of less demand. This is especially true now that it appears China is starting to switch a lot of its larger machinery, such as buses and semi-trucks, over to natural gas. That has had a negative effect on crude oil, while having a positive effect on natural gas, as you would expect.

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