Crude Oil Price Forecast – Crude Oil Continues to See Overhead Pressure

WTI Crude Oil Technical Analysis

The crude oil markets have done very little during the early hours on Monday, as we continue to see the West Texas Intermediate crude oil market pay close attention to the $71.50 level. That’s an area that previously had been supported. So now market memory dictates that a little bit of resistance probably finds its way into the market here.

If we were to break down from here, the $70 level should be supported. So, I would watch that as a potential entry as well. I don’t know what we will do in the short term, but I do know that in the longer term, we are still closer to the bottom of the overall consolidation than we are at the top. Brent markets look very similar.

Brent Crude Oil Technical Analysis

However, in the Brent market, the resistance seems to be right around the $74.50 level and breaking that opens up a move to the $75.50 level. Keep in mind that underneath we have significant support at the $72.50 level, which has been tested multiple times.

I do think that we continue to see a lot of noisy behavior in crude oil markets overall, as traders are trying to sort out whether or not central banks cutting rates drive economic activity in a positive way, thereby driving up demand for crude oil, or is it the beginning of something that looks a whole lot like a global recession, which of course drives down the demand for crude oil? Again though, we have been closer to the bottom of the overall range for the last couple of years than the top, so I would lean to the upside.

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