Crude Oil Price Outlook – Crude Oil Continues to See Buyers

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market shot higher during the early hours on Wednesday.

At this point in time, it looks like the market is going to continue to be noisy, but I still favor the upside in the oil market as it looks like we are in the midst of a bit of a consolidation, perhaps trying to build up the necessary momentum to continue going higher. If we do pull back from here, I think there’s plenty of support at the 200 day EMA and of course the $72.50 level.

This is an area that previously had been significant resistance. So now market memory dictates that it should be fairly supported. I have no interest whatsoever in trying to short this market anytime soon, as I do believe the trend is changing right along with inflation and growth.

Brent Crude Oil Technical Analysis

The Brent market broke to the upside to clear the 200 day EMA only to turn around and drop right back below it. I do think that Brent eventually goes higher and I like the idea of buying short-term pullbacks, but all things being equal, you have to be very cautious about getting overly aggressive.

We rallied quite nicely. So really what you would like to see is a little bit of a pullback and then a balance that you can start to take advantage of. I have no interest in shorting Brent either, although I do favor West Texas crude oil, mainly due to the US exposure of that grade more so than Brent. Either way, though, I expect both of them to go higher.

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