WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market initially tried to rally during the trading session on Thursday, but it looks like we are running into a bit of a buzzsaw of resistance. With that being said, I’m paying close attention to the $67.50 level as a significant barrier that traders will continue to watch that I think extends to just above the $68 level.

It certainly looks like we are going to continue to see pressures on Crude as demand in China continues to drop. And of course, there are a lot of concerns about a global slowdown. So, with that, I think it remains somewhat fade the rally.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same. In this case, it’s the $71.50 level offering a bit of resistance, but I do think there’s going to be a certain amount of psychological support right around the $70 level. I don’t know if crude oil is in the process of bottoming, but we are at extremely oversold conditions, so you would expect a little bit of a fight to the upside.

If Brent can break above the $72.50 level, then I think it can really start going, but right now, this is a market that continues to struggle with the idea of less demand. This is especially true now that it appears China is starting to switch a lot of its larger machinery, such as buses and semi-trucks, over to natural gas. That has had a negative effect on crude oil, while having a positive effect on natural gas, as you would expect.

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