Crude Oil Price Forecast – Crude Oil Continues to Build a Base

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market rallied a bit in the early hours on Thursday as we continue to see a lot of sideways but slightly positive action. The West Texas Intermediate crude oil market is one that of course is going to be more influenced by the U.S., so I think that’s part of what’s going on here.

But quite frankly, I think you also have to understand that if central banks around the world are going to loosen monetary policy, the idea is that perhaps business will pick up and of course, if the economy picks up, crude oil rallies as it is the lifeblood of the economy. You could also make a strong argument that perhaps it’ll just be simple inflation that drives prices up as well.

Brent Crude Oil Technical Analysis

Brent has rallied a bit during the early hours on Thursday as well, but it is going to have to deal with the $75 level, the $75 level extends to the $76 level, and breaking above that opens up the possibility of a move to the 200 day EMA. Short term pullbacks will more likely than not continue to see plenty of buyers underneath, with the $70 level offering a bit of a floor.

I think Brent is pretty much in the same situation that WTI crude oil is in the sense that we are in the process of bottoming, but this could be a very long process. Most traders I know that are doing fairly well with this are simply buying dips, taking advantage of cheap oil as it occurs, but also not hanging on to the position. I think that is something that is probably more a 2025 story.

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