Crude Oil Price Outlook – Crude Oil Continues to Look Lackluster

WTI Crude Oil Technical Analysis

The light sweet crude market has been very quiet in the early hours on Wednesdays as we are in the midst of trying to sort out where the bottom is. We are finding ourselves at the $69 level, which extends all the way down to the $67 level for a potential floor. There are concerns about global growth, and that’s been one of the biggest problems for oil. But quite frankly, when you look at it from a longer term standpoint, we are at the bottom of a major consolidation range that goes back multiple years.

So, I am still looking for a move to the upside. I just haven’t had the setup, or the momentum come into the market to actually put money to work. With that being the case, if we do break above the massively ugly candlestick on Tuesday, I obviously would be paying close attention and be thinking about buying at that point. But right now, I think this is a market you’re watching more than anything else.

Brent Crude Oil Technical Analysis

Brent, also very sideways and very hanging around the bottom of the range and trying to sort itself out. The $73 level is a short term support level and if we can break down below there, it’s likely that the market could drop all the way down to $70 and still be in the same range that we’ve been in for several years. I think this is much like the light sweet crude market where if we can take out that ugly candlestick from the previous session on Tuesday, then I think you start to think that Brent is finding a real bottom.

Overall, though, I think this is much like the light sweet crude market in the sense that you are probably on the sidelines and just waiting to see what happens. It’s an almost untradeable market at the moment, as it has just been chopped back and forth in a downtrend over the last couple of weeks but had shot straight up in the air before then. A lot of concerns about economic growth right now, and that has caused havoc in oil.

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