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Crude Oil Price Forecast – Crude Oil Continues to Attempt to Recover
Published: Jun 11, 2024, 13:39 GMT+00:00
The crude markets pulled back a bit in the early hours of Tuesday, only to turn around and show signs of life again. At this point, I believe that the markets will eventually recover fully from the selloff, but we have the FOMC on Wednesday that could throw a spanner into the mix.
In this article:
WTI Crude Oil Technical Analysis
The crude oil market pulled back slightly during the early hours of Tuesday but has turned around to show signs of life again. All things being equal, this is a market that looks like it is trying to reenter the previous consolidation area. And it does make a certain amount of sense that we have seen buyers jump back into this market due to the fact that it was so oversold. The crude oil market continues to be one that will move on geopolitical concerns and of course, demand, as this is a time of year that is typically very bullish for crude oil.
West Texas Intermediate, of course, is more sensitive to the United States. And with the recent strong jobs number, it suggests that there will be more demand. Furthermore, geopolitics, of course, are bullish due to the fact that there are a lot of concerns in the Middle East. At this point, it looks like a buy on the dip market.
Brent Crude Oil Technical Analysis
Brent markets look very much the same as we’re hanging around the $81.50 level. And at this point, I think we are trying to get to the $84.50 level. This massive sell off has been rebuked. We haven’t completely wiped it out, though, so I expect choppy behavior. Keep in mind that the FOMC meeting on Wednesday will have a major influence on commodities in general, and that includes Brent. So be cautious of that. If we do pull back somewhere around $80, I expect to see significant support. I am bullish, but I’m also patient. And I think that’s going to be the key here.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Christopher Lewisauthor
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.
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