Crude Oil Price Outlook – Crude Oil Continues to Look Rangebound

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market has pulled back ever so slightly during the early hours here on Thursday, but really at this point in time, we’re just in the middle of what I see as a larger consolidation area.

The market has been bouncing around between the $65 level on the bottom and the $75 level on the top. It is worth noting that the 50-day EMA is sitting right around here. All things being equal, this is a market that I think short-term pullbacks get bought into mainly due to the massive amount of support underneath near the $65 level that we have seen for a couple of years now.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same as we continue to chop back and forth. As it sits just below the 50 day EMA between the $70 level on the bottom as its major support and the $80 level above as its major resistance. Keep in mind that we have a Federal Reserve interest rate decision late on Thursday, so that could have a little bit of influence on the idea of the trajectory of demand. But quite frankly, America is probably going to start drilling more.

So that may keep oil prices suppressed going into the future. Now, it’s not something that is flipped on and off like a switch, but you can bet your bottom dollar that the Trump administration will make energy production one of its number one priorities. In fact, they’re already talking about it. So with that being said, I do think that although there is a floor in crude, we probably stay more range bound than anything else.

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