Crude Oil Price Forecast – Crude Oil Continues to Look For Bottom

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Published: Jun 6, 2024, 12:51 GMT+00:00

The crude oil market has been negative for several sessions, until recently. This is a market that is currently testing a certain amount of support, as the cycle this time of year is likely to be an influence as well.

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market initially pulled back during the trading session on Thursday only to turn around and show signs of life. At this point, it looks like crude oil is trying to recover from a massive oversold condition and quite frankly, I think it is a market that sooner or later finds its footing. However, it’s also worth noting that traders around the world seem to be very concerned about global growth. And of course, that has a major influence on crude oil.

However, with the Bank of Canada, the Swiss National Bank, and more likely than not, the European Central Bank, all cutting rates in rather quick succession, there is the idea that perhaps demand will pick up due to economic activity, so we will have to wait and see. At this point, it looks like $73 is support, $76.50 is your resistance.

Brent Crude Oil Technical Analysis

Brent markets of course look very much the same as you would expect. And with that being said, the market will continue to be very noisy, but I do think a rally at this point in time could open the door to the $81 level. Any short-term pullback at this point, I think, probably attracts a certain amount of value hunting, the market breaking below the $77 level in the Brent grade could really send this market down to the $75 level. I do think that we’re getting closer to the bottom than ever before, but I still expect a lot of volatility. I would think more range bound in the short term.

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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.