Crude Oil Price Outlook – Crude Oil Continues to See Sideways Action

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market has rallied a little bit in the early hours on Tuesday as we continue to see a lot of noisy behavior. All things being equal, this is a market that I think a range bound trader will like because it is so clearly defined as having a bottom near the $65 level and a top near the $72.50 level. Crude oil, of course, is in a state of flux as we are trying to sort out what the situation in the Middle East is. But at the same time, we have to worry about global demand.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same, although its parameters are $70 on the bottom and $80 on the top. But it doesn’t look quite as strong. We are closer to the bottom in the Brent market. So this does suggest that perhaps demand will be stronger in the United States, which isn’t much of a stretch at this point. So WTI crude oil will probably lead the way.

Both of these grades of oil have seen a lot of support underneath at the support levels mentioned over the last couple of years. And I think they do continue to hold unless something serious happens. On the other hand, if we were to break out to the upside, it would almost certainly have to do with some type of geopolitical scenario. Right now, it looks like the markets are comfortable just grinding back and forth. They’re so again, if you’re a range bound trader, this is probably your favorite place to be right now.

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