Crude Oil Price Outlook – Crude Continues to Stabilize

WTI/CL Technical Analysis

The Light Sweet Crude oil market has been slightly positive during the early hours here on Thursday, as we continue to dance around the 65 dollars region. This is an area that previously had been significant resistance and now has offered support. The last couple of weeks we’ve had wild moves in the oil market due to the war between the Iranians and the Israelis, but we had been building a bottoming pattern before then, so I think really what we’re going to see here, or at least what I’m hoping to see, is a little bit of stability for a few days and then a gradual grind higher. If we break down below the $64 level, then we probably pull back closer to the $62 level to look for support yet again.

Brent Technical Analysis

Brent markets have shown themselves to be attracted to the $68 level in a very tight range over the last two days, now that the tensions in the Middle East seem to have calmed down. The 50 day EMA is an indicator that a lot of people watch, and we are right there. If we can break above $69, then I think Brent will behave very much like I hope Light Sweet Crude will and just grind higher, giving us a bit of a summer rally, if you will. Ultimately, I think you have to look at this through the prism of a market that’s trying to find its base at a very important level and just react accordingly.

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