Crude Oil Price Outlook – Crude Oil Continues to Test Support

WTI Crude Oil Technical Analysis

The light sweet crude oil market initially pulled back a bit during the early hours on Monday, but as you can see, we have been a little bit negative here as of late, and I think that continues to be the case. With this being said, I think you have to be very cautious about trying to get overly bullish, although it does look like we are trying to at least defend the $67 level. The $67 level of course is a major support level going back to the last three years or so.

If we do rally from here, and it looks like we’ll at least try to, I think the $70 level could be your target. If we break below the lows of last week, we could see oil really start to fall apart, probably reaching towards the $65 level rather rapidly.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same as we are hanging out just above the $70 level and this also is an area that’s been important. If we do rally from here, I think it’s likely that we could go to the $72 level, possibly $73.50. If we break down below the bottom of last week, it’s likely that the Brent market will really fall apart, probably going to look for $65 at that point.

A lot of this comes down to fears of a global recession, so keep that in mind. If we get an economic turnaround here, then the price of oil is really at this point, I think the risk is to the upside, not the down, all things being equal, just based on the previous support that has been so important.

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