Crude Oil Price Outlook – Crude Pulls Back to Find Buyers on Thursday

WTI Crude Oil Technical Analysis

The light sweet crude oil market has shown itself to be somewhat negative in the early hours of Thursday, but it has seen some buying come back into the picture. And it looks like we’re trying to hang out near the 50 day EMA. At this point in time, the market is a little bit stretched from the short term perspective, but longer term, I don’t think we really have too many concerns other than whether or not we get a short term pullback, which in the end probably only offers value anyway.

With that being the case, I like the idea of buying these dips. I recognize that the area around the $67 level, of course, is a massive floor that traders have been paying attention to for about three years now. So, I definitely think this is more risk to the upside than down here. And I like the idea of buying pullbacks as we build further momentum.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same. It has pulled back toward the crucial 50 day EMA only to show signs of life again and it now looks as if the market is going to try everything it can to get to the $75.50 level, which sits just below the crucial 200 day EMA. The $75.50 level has been important multiple times and in both directions, so I would anticipate a big fight there.

Nonetheless, Brent is going to be behaving the same way the light sweet crude market is. And of course, both are looking forward to the heavier demand season this summer. Brent also has the added bonus of being more an international grade of crude. So therefore, the economic turnaround in Europe will have more of an outsized influence on demand here as well.

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