Crude Oil Price Outlook – Crude Continues Sideways Action

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market rallied a bit during the course of the early hours on Monday, as we continue to just go back and forth. This is a market that is desperately looking for some reason to break out or break down and right now it just doesn’t have it. Oil has a long history of finding a range and just parking. That’s essentially what you’re seeing right now.

The $65 level underneath is the floor. The $72.50 level is the ceiling. And we are basically in the middle of it. This market is about as neutral as it gets right now as traders are weighing the difference between Middle East tensions and real demand. Furthermore, you have the Trump administration who is almost certainly going to be drilling more. That being said, it is up a little over 1% in the early hours.

Brent Crude Oil Technical Analysis

Brent markets look very much the same, but they are closer to the support level. This does make a little bit of sense that they might be a little lower from a relative perspective because they are more likely to be influenced by what’s going on in Europe in the Middle East. That being said, the $70 level has been a hard floor for the market over the last couple of years.

So, I think you will continue to see more of a buy on the dip mentality, but we have not been able to break above the $76 level. Much like the WTI grade, I think we’re just killing time or trying to figure out where to go next. So, if you’re a short-term range bound trader, these markets are actually really good right now for you. That being said, if and when we finally break down or break out to the upside, it should be a rather interesting move as it should have a lot of inertia built up.

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