Crude Oil Price Outlook – Crude Oil Continues to Look for Floor

WTI Crude Oil Technical Analysis

The Light Sweet Crude Oil market initially fell overnight but quickly reversed and now appears to be clinging to the $67 level. At this point, the market seems to be forming a short-term range, with $68 acting as resistance and $66 providing short-term support. A larger move will depend on whether demand is strong enough to push prices higher.

Global economic concerns remain a major factor, and since oil is the lifeblood of the economy, any weakness in economic outlook could put downward pressure on prices. Despite this, the $67 level has been a critical support area for the past three years, suggesting that short-term traders may look to buy on dips, looking for value at any chance we get.

Brent Crude Oil Technical Analysis

Brent crude follows a similar pattern, hovering around the $70 level, which has also served as a key three-year support level. Brent appears to be forming a range between $68 as support and $72 as resistance. In the short term, the market is doing everything it can to hold crude oil prices steady, but there are few fundamental drivers working in its favor.

If Brent can break above $72, it could see a stronger recovery. However, for now, crude oil remains in a choppy, back-and-forth trading range. This leads itself to be the domain of short-term trading more than anything else. At this point, the market also is one that you will have to be very careful with position sizing and volatility. Oil will continue to be difficult, to say the least.

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