Crude Oil Price Forecast – Crude Oil Continues to See Support

WTI Crude Oil Technical Analysis

The crude oil market has found itself a little bit sluggish in the early hours as the West Texas Intermediate Crude Oil Market sits just above the crucial $67.50 level. This is an area that’s been important a couple of times in the past, so it’s not a huge surprise to find that we are sitting here and finding a little bit of support.

If we can break above the $69 level, then we may see a little bit of momentum enter the market as WTI tries to get to the $71.50 level. If we break down below the $67 level, then it’s possible that the WTI market could break down to the $65 level, where there’s even more support.

Brent Crude Oil Technical Analysis

Brent is very similar as it’s just around $71.50. Above we have the $72.50 level offering resistance and the $70 level underneath offering support. I find it interesting that crude oil is actually somewhat down in the early hours on Monday, despite the fact that clearly the military actions in the Middle East are picking up, they’re not slowing down.

But evidently, as long as the other major players beyond Israel stay out of it, I think crude oil is probably going to focus more or less on the supply and demand side. If Saudi Arabia or Iran run into the battle, that probably changes everything. But until we see something like that, I think the Middle East tension is essentially something that quite frankly is not a major driver.

The fact that economies around the world are slowing down, of course, is a major driver, but we also have central banks around the world cutting rates, so that doesn’t suggest that perhaps the liquidity could drive the market higher. So, we have a lot of push and pull at the same time. From a technical analysis standpoint, we are close to the bottom of the range that we have been in for about two years. So, I do favor the upside, certainly a lot of unintended consequences would favor the upside, but I also recognize that this is probably going to be a very messy market regardless.

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