Crude Oil Price Outlook – Crude Oil Continues to See Range

WTI Crude Oil Technical Analysis

The Light Sweet Crude initially tried to rally during the session on Friday but gave back those gains to show hesitation yet again. At this point, it’s obvious that we are still very much in a trading range and therefore you have to treat it that way. However, what I would point out is that each time we drop, it seems like we drop just a little less than the time before.

What this tells me is there’s at least more of a lean to the upside. Now all we need is some follow through that we can take advantage of. Keep in mind that we have been dancing around a major support level from the last three years in this market. And I think that’s one of the things that you should quietly be paying attention to.

Brent Crude Oil Technical Analysis

The Brent market also did rally a bit in the early hours only to give those gains back. But keep in mind that a really bullish candlestick on Thursday is still nowhere near being wiped out. Again, the lows on each of these pullbacks continue to get a little bit higher. So, I think we are squeezing our way higher in the Brent market as well. Keep in mind this time of year typically sees a bit more interest in oil and demand of oil as people start to drive more and of course, economic activity could be picking up.

Think about Europe. Europe is coming out of a recession. It makes a certain amount of sense that demand will pick up. It also makes a certain amount of sense that oil could rally because traders in America are expecting the Federal Reserve to start cutting rates. That means increasing economic activity, at least in theory, and it does typically help oil rise as well.

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