Crude Oil Price Outlook – Crude Oil Continues to Drift

WTI Crude Oil Technical Analysis

The light sweet crude market has drifted a bit lower during the early hours on Friday as the $72.50 level dropped is an area that has offered a little bit of resistance, which should not be a huge surprise considering it has previously. Ultimately, if the market does rally from here, the 200 day EMA is an indicator that we need to pay close attention to at the $74 level because I think it does offer a little bit of technical resistance. Anything above that really gets this market moving, but we’ll have to wait and see.

On the other hand, if we break down below the $70 level, that could send the market down to the $67 level, where we have a massive amount of support. I do believe that we’re in the process of trying to bottom out, but right now, there’s so many questions about global trade that oil just can’t get its feet moving, and therefore I think you’re stuck with this range-bound chop, in the short term at least.

Brent Crude Oil Technical Analysis

Brent has also pulled back as the 200 day EMA has offered a little bit of a barrier as well and it continues to hover around the $75.50 level, an area that had previously been both support and resistance. So, I do think there is a certain amount of sideways back and forth trading here just waiting to happen. I also recognize that we are in a situation where traders will probably continue to think about this through the prism of global growth or not.

And right now, it looks like there is a lot of confusion as the markets continue to be weighing global tariffs and of course, global slowdowns at the same time. That being said, we have pulled back into a pretty significant support range that has been important for multiple years. So, I think this is a scenario where eventually we do try to take off to the upside, but in the short term, this is going to be very much like the light sweet crude market and a short-term back-and-forth scalping type of environment.

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