Crude Oil Price Outlook – Crude Oil Continues to See Support

WTI Crude Oil Technical Analysis

The light sweet crude market pulled back just a bit during the early hours on Friday, but it looks as if we are trying to turn things around and rally yet again. We are hanging around the crucial $70 level, which of course is a large round psychologically significant figure and will attract a certain amount of attention. All things being equal, I do think that we are in the middle of what could be the potential range for the next few months. But I do favor the upside as we have bounced quite nicely from the $67 region. Short-term pullbacks, I think, end up being buying opportunities going forward at this juncture.

Brent Crude Oil Technical Analysis

Brent markets look very much the same, although we did gap lower to kick off the session only to turn around and show signs of life at the 50-day EMA. The $75.50 level above is a potential target. If we break down from here, I would expect to see support somewhere near the $72 level, and again, at the $70 level.

All things being equal, this is a market that I think continues to see a lot of volatility. But I do think that given enough time, there will be buyers willing to take advantage of cheap barrels of oil. We are heading into the time of year where there tends to be more demand, especially in the United States and Europe. So, it does make a certain amount of sense that cyclical trade comes back into the picture as well.

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