Crude Oil Price Outlook – Crude Oil Continues to See Basing

WTI/CL

The light sweet crude oil market has gapped higher to kick off the Monday session but has since fallen to show signs of hesitation again. Ultimately, I think we are in a situation where traders are trying to do what they can to sort out where to go next. And with that being the case, I also recognize that you have to understand that there are a lot of questions to be asked about the overall economic conditions around the world and the effects that potential tariffs are going to have on the forefront. Crude oil of course is heavily influenced by economic activity, so it’s not a huge surprise to see this as a very noisy place to live right now.  The light sweet crude oil market continues to see the $60 level below as a floor and the $65 level above as a ceiling.

Brent

Brent markets are pretty much sideways as well as we continue to wait for more clarity when it comes to the tariff war and where things may or may not be going over the longer term. I think that Brent probably has a little wider range, perhaps in the realms of about $10, but we’ll have to wait and see. I also recognize that this is a market that could very well find buyers on dips.  As those dips get filled, we begin to continue the overall basing pattern that should lift this market. A break above the $70 level obviously would be very bullish and it could open up a run towards the $74 level. Short-term pullbacks again I think are buying opportunities.