Crude Oil Price Outlook – Oil Continues to Build a Consolidation Pattern

CL/WTI Technical Analysis

The crude oil market in the light sweet crude grade has fallen a bit in the early hours as we continue to see a lot of noisy behavior. All things being equal, this is a market that I think given enough time, we’ll have to determine what the global demand might be. I think that’s exactly what’s going on right now as we are hanging around a pretty significant consolidation region and just below we have a pretty significant support level in the form of $60. If the $60 level were to be broken down and price falls below, that could be a horrible sign for this market. If we can break above the $65 level, that would be bullish.

Brent Technical Analysis

Brent markets also look as if they are trying to sort out what to do next. We are pulling back to the $66 region as I record this video, which is an area that’s been significantly resistant in the past. So, with that being said, I think you have a situation where traders will continue to be more buy on the dip, but we need to stabilize first before you can get aggressive. Again, I do think that this will come down to whether or not the US and China can come together with some type of trade agreement. If they can, I suspect that they would send oil launching much higher from this type of setup.

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