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Crude Oil Price Outlook – Crude Oil Continues to Look for Floor After Tariff Spat
Published: Feb 4, 2025, 15:00 GMT+00:00
The US/Canada tariff spat caused a lot of noise in the oil markets, but at the end of the day, it looks like there isn’t going to be a massive trade war. Because of this, some of the anxiety in the oil markets seems to have disappeared.
WTI Crude Oil Technical Analysis
The crude oil market in the light sweet crude oil grade has broken below the $72.50 level and therefore is digging into the previous consolidation area that we had been in. That being said, it’s not necessarily that big of a deal. This is a market that I believe will continue to see a lot of interested parties involved. And with that being the case, I think every time we get to these lower levels, you will see traders out there trying to take advantage of a very massive support zone on longer term charts.
We just don’t have the bounce yet. That being said, if we do get through all of this trade war stuff without too many scars, then it’s very likely that we will see demand pick up and therefore price bounce. But right now, we’re just in a holding pattern.
Brent Crude Oil Technical Analysis
You can say the same thing over here in the Brent market as we are below the $75.50 level and therefore you have to look at it through the prism of a market that is trying to find out whether or not this previous support level will be important enough to keep things afloat. If we can break to the upside and clear the 50 day EMA, then it opens up a move to the 200 day EMA near the $78 level. I do believe that volatility is probably the order of the day. But as things stand right now, I’m waiting to see some type of bounce that I can get involved in. The lower it goes, the more interested I get.
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About the Author
Christopher Lewisauthor
Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.
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