Crude Oil Price Forecast – Crude Oil Continues to Rally

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Published: Aug 26, 2024, 14:08 GMT+00:00

The crude oil market rallied quite nicely in the early hours of Monday, as the market is very strong with several different reasons for it to go higher. War threats, Libyan slowdowns, and a host of other issues continue to plague the market at the moment.

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market has broken above the $76.50 level, and now looks as it might try to get to the $78,50 cents level. Libya holding production has put a charge into the market, but there’s also a lot of concern out there about the Middle East flaring up into further conflict, and that, of course, is a very real possibility.

With that being said, I think you have to look at this through the prism of a market that will continue to be very noisy, but I think it continues to be more or less a buy on the dip type of scenario. The $75 level underneath should offer a certain amount of support, and I do think that it is probably only a matter of time before we see this market just simply hang about and try to build up enough inertia to break out of the larger consolidation barrier.

Brent Crude Oil Technical Analysis

Brent markets look very much the same, although they are closer to threatening their resistance at the $81.50 level. If we can break that, then the market could very well pick up another $6 based on the measured move, but we’ll have to wait and see. That would be somewhere around $87.50. I do think that each pullback ends up being a buying opportunity, because quite frankly, when you look at a long-term chart, we had tested pretty significant support, so oil just got too cheap.

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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.