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Crude Oil Price Forecast – Crude Oil Continues to Look Stuck in a Range
Published: Sep 2, 2024, 14:05 GMT+00:00
The oil markets bounced in general in thin holiday trading on Monday, but at this point in time, the markets are essentially “stuck”, as there are so many different external forces being pressed upon them.
In this article:
WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil Market bounced slightly to kick off the week, but you should also keep in mind that we have a scenario where the Americans are away at Labor Day, so a lot of the liquidity in the futures market is gone. And of course, the normal trading hours are skewed to electronic overnight trading. With that being the case, we’ve got a situation where the market just is bouncing from an oversold condition.
And it does look like we are compressing a bit over the last several weeks, as we are trying to sort out which direction we go. This makes a lot of sense, considering that there is a handful of interest rates coming, but at the same time, the economy, although seeing inflation is also slowing. So, there’s a huge mix of troubles ahead. And I think you continue to see this market bounce around between the $71.50 level at the bottom and the $75 level on the top.
Brent Crude Oil Technical Analysis
The Brent market looks very much the same with $75.50 being your floor. The ceiling is somewhere near the $79 level, but also you have to keep in mind that Brent suffers a lot of the same issues that West Texas Intermediate Crude Oil does. One of the hardest ones to actually get your head around is the idea that there are so many geopolitical concerns out there at the same time. So, I think we continue to see a very choppy and noisy market, but all things being equal, I think we stay somewhat range-bound.
For a look at all of today’s economic events, check out our economic calendar.
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.
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