Crude Oil Price Outlook – Crude Oil Stabilizing

WTI Crude Oil Technical Analysis

Crude oil markets stabilized a bit during the early hours on Thursday as we continue to try to find our footing after the recent pullback. After all, the light sweet crude market has been very strong and the fact that we pulled back the way we have could entice buyers. Loose monetary policy around the world should bring in more demand for crude oil, as well as economic expansion in the United States, which seems to be going nowhere at this point.

The expansion is definitely a somewhat permanent effect on the global economy, and therefore oil will be needed across the board, not just in the US, but it’s probably going to be driven by the US.

Brent Crude Oil Technical Analysis

Brent markets are going to follow the same trajectory and at this point in time, it’s worth noting that we are sitting above the 200 day EMA just below, and that could offer a little bit of support. I have no interest in shorting Brent and I think Brent could go looking to the $82 level. In fact, it looks a little bit more positive in the early hours on Thursday than Light Sweet Crude does, which is a bit of a reversal of fortune.

All things being equal, I do think that both crude oil markets will go higher over the next couple of months, but it is going to be very volatile, it typically is in these markets. But if you are cautious with your position size and simply add to gains and get out of short-term drops very quickly, you should be able to ride the momentum to the upside.

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