Crude Oil Price Forecast – Crude Oil Continues to Look Likely to Break Out

Crude Oil Prices Forecast Video for 01-02-2024

WTI Crude Oil Technical Analysis

Crude oil has pulled back just a bit early during the trading session on Wednesday, as we continue to see a lot of noisy behavior. Ultimately, I think this is a situation where you have to look at it through the prism of trying to find a little bit of value. And that value, I think, will show itself more often than not on dips towards the $75 level.

Regardless, we are currently messing around with the 200-day EMA, which captures a lot of attention and drama as well. All things being equal, this is a market that I do think continues to go higher, but you have to be very cautious with crude oil as it can be extraordinarily volatile. It’s probably worth noting that the crude oil markets are also having to deal with not only a supply and demand issue, but the fact that there are a lot of concerns out there in the Middle East as well.

Brent Crude Oil Technical Analysis

Looking at Brent, the same scenario here, as we’re right around the 200-day EMA and we have the $80.50 level offering a significant support level. Therefore, I think you have to look at it through the prism of trying to buy dips over here as well. In general, this is a market that I think will continue to see a lot of interest around the $80 level, and if we can break above the recent highs, then I think we can go to $90. In fact, I think both of these grades of oil could hit $90 in the next several weeks. Whether or not that is an easy trade remains to be seen, but clearly, at this point, there seems to be more or less a proclivity to buy value every time it appears.

The FOMC meeting late in the day could have an influence on the market, as well as loose monetary policy, which generally means that energy will start to be in demand as well, but we’ll have to wait and see whether or not that actually plays out.

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