Oil & Gas - Energy - Commodities - Resources (OILBRENT)

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Crude Oil Markets Give Up Early Gains
By: Christopher Lewis | August 3, 2022

• Crude oil markets continue to struggle in general, as we are right in the midst of a major consolidation area.

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has initially tried to rally during the trading session on Wednesday to show signs of life again, but we have since pulled back a bit in order to show hesitation. With this, I think the market is likely to continue offering a “fade the rally” type of situation within the confines of a bigger consolidation area. At this point, it’s worth noting that the market seems to continue struggling, and even though OPEC has decided not to increase production, oil cannot get off its back. What does this tell you about the outlook of the global economy going forward? If we slow down worldwide, that is going to continue to drive prices down.

Brent Crude Oil Technical Analysis

Brent markets did the same thing, as we continue to hang around the $100 level. The $100 level is likely to continue to see a lot of volatility as well, especially as we said just above the 200 Day EMA. It’s worth noting that there is a bit of a gap in the same general vicinity, so it makes a certain amount of sense that there might be a little bit of “market memory” in this region. That being said, I do think that we are more likely than not going to continue to see every rally shorted, as we continue to go back and forth in a very tight range. As traders trying to determine whether or not we are going to have growth this year, that has a major influence as to what happens with crude oil in general. Ultimately, we are squeezing for a bigger move.

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