Crude Oil Price Outlook – Crude Oil Continues to See Supporters

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market rallied slightly in the early hours on Wednesday as we continue to see a lot of choppy noise. It’s worth noting that we are hanging around the 50 day EMA, which of course attracts a lot of attention. But in general, I would also point out the fact that the FOMC is later in the day and that of course will have a major influence on risk appetite, what people do with the US dollar, et cetera.

We have been in a consolidation range for some time, but it looks as if the fortunes of oil will probably turn around early next year. And therefore, I think you’ve got a situation where short-term pull banks offer buying opportunities, not only due to the fact that there is major support underneath near the $65 level, but energy demand could pick up if we continue to see central banks cut rates around the world.

Brent Crude Oil Technical Analysis

The Brent market, of course, looks very much the same and is of course hanging around the 50-day EMA as well. In the case of the Brent market, the $70 level is a massive support level that people will continue to pay close attention to and is a support level that has lasted for some time. If we do rally from here, the $76 level would be a bit of a barrier and then after that, you would have the 200 day EMA.

I do suspect that the West Texas Intermediate Crude Oil Market is the leader here mainly due to the fact that it is typically more or less an American product. So, with that being said and America leading the charge economically around the world at the moment it all ties together. Either way I do think that both grades of crude oil are in the process of putting in a bottom.

For a look at all of today’s economic events, check out our economic calendar.