Crude Oil Price Outlook – Crude Oil Finds Volatility at The Open

WTI Crude Oil Technical Analysis

The light sweet crude oil market has rallied initially during the trading session on Monday as tariffs were announced over the weekend and at this point in time, it looked like people were starting to get very nervous about the US-Canada-Mexico trade war. That being said, we have since seen this market turn around a bit and show signs of hesitation, because the leaders of the three countries, the United States, Mexico, and Canada, are all supposed to speak to each other during the day. So, I think we’re somewhat in a holding pattern.

Nonetheless, we are in an area that’s a bit of a basing pattern anyway, so it would make a certain amount of sense to see this market climb a bit from here over the longer term. The $72.50 level continues to be support, and I will continue to look at it as such. So maybe a little bit of a bounce here could help send more momentum into the market. But I do think that at this point in time we are more likely to see a bounce than a fall.

Brent Crude Oil Technical Analysis

The Brent market is very much in the same situation as we initially tried to rally but the 200 day EMA has offered a little bit of resistance and now we find ourselves sitting just above the crucial $75.50 level. The $75.50 level is an area that of course a lot of people will be paying attention to and therefore I think it is a scenario where most people are looking at this through the prism of whether or not they are finding value.

I suspect they are, as long as we can stay above the $75 level. I think you have quite a bit of buying interest here. That being said, I don’t think it’s going to be a very easy move to the upside, but I do think that we will grind higher, especially as we start to enter warmer months and people are going to be driving more.

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