Crude Oil Price Forecast – Crude Oil Continues to Find Buyers

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market rallied quite a bit in the early hours on Thursday as we have almost wiped out all of the selling pressure from the FOMC meeting on Wednesday. At this point in time, it does look like oil is trying to do everything it can to launch, but one of the biggest hurdles it’ll face won’t necessarily be resistance, it’ll be the fact that we are heading towards the holiday season. So, with that being the case, you have to look at this through a buy on the dip type of scenario.

If we pull back from here, the $67 level is support followed by the $65 level. But we also have to keep an eye on the $72.50 level above for significant resistance. I do think eventually we break above here, if for no other reason than inflation. But this time of year, it’ll be interesting to see if we can build up that type of momentum.

Brent Crude Oil Technical Analysis

Brent is a bit of a laggard, but it looks pretty strong during the trading session on Thursday as well and this reflects the difference between the US economy and pretty much everybody else in the world.

That being said, this market will rally right along with West Texas Intermediate crude oil given enough time and I think it is also in the process of bottoming for what could be a reasonably significant move early next year. I would be cautious about betting the farm here though, because quite frankly, we are going to have a couple of weeks of very illiquid trading. So short term pullbacks probably offer buying opportunities, but I wouldn’t get too aggressive, at least not until we get into January.

For a look at all of today’s economic events, check out our economic calendar.