- The light sweet crude oil market has been all over the place during the trading session here on Friday as the $62 level is a significant support level.
- I think if we break down below the $62 level, then the $60 level is the floor.
- There's about a $2 range of support. If we break to the upside, then we have to watch the 50 day EMA near the $64.41 level. And then eventually the $65 level, which offers a certain amount of resistance as well, all things being equal.
This is a market that I think continues to see a lot of sideways action. And it does make a certain amount of sense considering that the demand for crude oil might be a little bit slack at the moment as the global economy looks to be slowing down. And most certainly the US economy is starting to wobble a bit. That obviously causes some concerns, especially here in this grade of crude oil.
Oversupply is also an issue
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But it's also worth noting that Russia, OPEC and the United States are all pumping out crude oil hand over fist at the moment. And that is a bit of an anchor around the neck as well. I do think eventually we're going to settle on some type of range, and we might be in the middle of trying to produce that range. I would suspect the way the $62 level has reacted to every time it's been tested. It's probably an area where you'll continue to see some buying pressure, but you can clearly see over the last week, we've had several attempts to really grind higher and just couldn't hang on to them. So, I think if you're a short-term trader, back and forth is what you're looking at.
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