Crude Oil Price Forecast – Crude Oil Continues to Consolidate

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Published: Aug 28, 2024, 13:57 GMT+00:00

Crude oil markets continue to see a lot of noise, and the Wednesday session was no different. At this point in time, the market is likely to continue to drop in the short term, but there is a massive amount of support in both grades of oil that I follow.

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market fell a bit during the trading session on Wednesday in the early hours as we are now back below the $75 level. That being said, the market is likely to continue to see a lot of noisy behavior, but I also think that the West Texas intermediate is going to see a massive support level at the $71.50 level.

The market is likely going to continue to be a situation where buyers are interested in it down there, but I think we’ve got a situation where traders are just simply kicking the market around back and forth because I think at this point, they don’t really know what to do. Plus, you have to keep in mind this time of year is typically somewhat thin as far as volume is concerned. So that might be coming into the picture as well. The market remains buy on the dip, but I’m not looking for big moves. I’m just looking forward to repeat what we just saw.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same with the $75.50 region being pretty significant support. And the market now being below the $78 level shows that we are probably going to try to drift in that general direction. With this, it’s also worth noting that inventories recently have been fairly robust in the United States, so that’s been putting a little bit of damper on Brent. But let us not forget, there’s always tension in the Middle East to worry about and of course, Libya is offline. So, I suspect that even though we probably will go lower from here, the downside somewhat limited and it should keep this consolidation intact.

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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.