Crude Oil Price Outlook – Crude Continues to Look for Higher Levels

WTI Crude Oil Technical Analysis

The light sweet crude oil market has shown itself to be rather impressive in its ability to levitate during the early hours on Tuesday, as we continue to see a lot of volatility. The 200-day EMA sits just above the crucial $72.50 level, an area that’s been important multiple times. With that being said, I think you’ve got a situation where traders are going to continue to be very hesitant to push. But part of what we had seen was a threat by Donald Trump to levy tariffs on Russia and, therefore, Russian oil if the Ukrainian conflict doesn’t come to an end. This continues to be an evolving story.

Brent Crude Oil Technical Analysis

Brent, of course, is behaving very much the same as you would expect, as it does tend to move right along with the other grades. The $75.50 level is an area where a lot of people will be paying close attention. And with that being the case, I think you have to be very cautious about getting aggressively long here. I am of the thought process on either grade, it really doesn’t matter which, that you are looking for opportunities to buy on the dip.

I do like the idea of these markets going higher in the near term as the busy season is about to start, but I also recognize that it doesn’t necessarily mean that it has to be right this second. I’d rather buy oil on sale at lower levels as the market will continue to see volatility.

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