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Crude Oil Outlook: Oil Prices Bounce off Support as Bank Jitters Ease

Crude Oil Outlook: Oil Prices Bounce off Support as Bank Jitters Ease

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Crude oil price forecast:

  • WTI crude oil extends gains, pushing prices to psychological resistance at $70.00 per barrel.
  • Brent crude oil heads toward the mid-point of the 2020 – 2022 move providing resistance at $77.00.
  • First Citizens BankShares Inc agrees to acquire the deposits and loans of failed SVB (Silicon Valley Bank), boosting sentiment.

The analysis in this article makes use of chart patterns and key support and resistance levels. For more information visit our comprehensive education library

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Oil prices have been on a consistent decline, that has been favoring bears for the past five months. Since November 2022, negative sentiment and sufficient supply have overshadowed China’s reopening. As a result, WTI (US Crude) and Brent (UK Crude) have sacrificed last year’s gains.

With WTI attempting to rise above the $70.00 psychological level, Brent crude is aiming for the mid-point of the 2020 – 2022 move at $77.00 per barrel.

As fears over the banking crisis subside, oil prices have experienced a slight boost in sentiment, adding onto last week’s gains. After rising 2.72% last week, two factors contributing to the recent move include output cuts in Russia and news stating that First Citizens BancShares Inc would acquire the loans and deposits of loans of failed SVB (Silicon Valley Bank).

Although Russia’s Deputy Prime Minister, Alexander Novak has indicated that Russia is close to achieving its target of cutting crude output by 500,000 barrels per day, China’s demand for oil will likely continue to rise.

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US Crude oil (WTI) Technical Analysis

US WTI Crude oil is currently trading 1.95% higher on the day, lifting prices to the key psychological level of $70.00 p/b. After falling to support at the mid-point of the 2020 – 2022 move last week, the liquid commodity continued to climb, recovering a small portion of this month’s losses. As traders and investors monitor developments in the banking sector, recession fears appear to remain as the primary catalyst of price action.

WTI Crude Oil (US) Daily Chart


Chart prepared by Tammy Da Costa using TradingView

WTI Crude Oil Price Levels to Watch

66.29 (200-week MA)70.00 (Psych level)
64.71 (mid-point of the 2020 - 2022 move)76.00 (50-day MA)
60.00 (Psych level)79.98 (38.2% Fib of the 2020 – 2022 move)

UK Oil (Brent) Technical Analysis

After rebounding off support at the 200-week MA (moving average), prices for Brent crude have continued to trade with modest gains. With UK oil currently pushing toward the mid-point (50% Fibonacci) of the 2020 – 2022 move, a hold above $77.00 could open the door for a retest of the next big psychological level at the $80.00 mark.

Brent Crude (UK) Oil


Chart prepared by Tammy Da Costa using TradingView

Brent Crude Oil Price Levels to Watch

70.42 (200-week MA)77.00 (mid-point of the 2020 - 2022 move)
65.79 (November 2021 low)80.00 (Psych level)
60.00 (Psych level)86.70 (March high)
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--- Written by Tammy Da Costa, Analyst for

Contact and follow Tammy on Twitter: @Tams707

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.