Crude Oil Price Outlook – Crude Oil Continues to See a Potential Bottom

WTI/CL Technical Analysis

The light sweet crude oil market has shown itself to be rather noisy yet again, as it looks like we are in the midst of trying to form some type of basing pattern. Keep in mind that crude oil is highly sensitive to the global economy as it is the lifeblood of moving goods from one place to the other. So, I think this is going to be an interesting market to watch because it could give us a little bit of a heads up as to what’s going to happen next.

With all of the tariff wars and tariff talk, as well as recessionary headwinds, it does make a lot of sense that crude oil struggles. But we are forming a little bit of a potential triangle down here just above the $60 level. So, it could be telling us it’s about time to make a move again. All things being equal though, if we do break above the $64 level, we’ll test the $65 level and then possibly even try to get to the 50 day EMA.

Brent Technical Analysis

Brent looks pretty much the same as you would expect. If we can clear the $67 level, I think it does pop towards the $70 level. The $60 level below, of course, is going to be a major floor in the market. And I do think that there is a lot of noise between here and there. I do think though, at this point in time, we are starting to see more buy on the dip traders coming back into the market.

Because quite frankly, there seems to be somebody wanting to keep the market above the $60 level. And of course, there is a lot of talk about potential help and hope in the tariff negotiations. When you have that, then you will have oil prices rising right along with it. That being said, we’re only one tweet or one headline away from the market getting wrecked.

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