Crude Oil Price Outlook – Crude Continues to Search for the Bottom

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market fell a bit in the early hours on Tuesday, only to turn around and show signs of life again, right around the crucial $67.50 level. This is an area that’s been important multiple times in the past, so it’s not a huge surprise to think that buyers continue to look at it as a potential entry point. After all, the $67.50 level is where we’ve seen a lot of support over the last two years or so, and although oil looks very weak, sooner or later it gets cheap enough that people start to buy into it.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same with the $70 level underneath offering significant support based not only on the last two years, like we have seen in the WTI grade, but also the fact that it is a large round psychologically significant figure. So, one would have to think that there will be a lot of options players down there willing to support the market. Furthermore, there are some questions to be asked about geopolitical tensions.

They continue to ebb and flow, and I think that has a part to play in this market. But we also have to keep in mind that there are questions about the overall demand because there is the possibility that the economic situation is slowing down around the world, and I think that’s one of the big fears here. In general, this is a market that I think is trying to offer a short-term buying opportunity, but I would emphasize the phrase short-term here.

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