Crude Oil Price Forecast – Crude Oil Continues to Rally a Bit

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market has been somewhat sideways for a moment here in the early hours on Tuesday as we continue to hang around the $78 level. The $78 level of course is an area that previously has been resistant, so it does make a certain amount of sense that we would see the market hesitate here. A short-term pullback from here opens up the possibility of valuable buy on the dip type of scenarios as there are certainly plenty of geopolitical concerns in the Middle East to drive the price of oil higher.

That being said, demand is threatened and as a result, I think we’re going to continue to see a lot of volatility. Somewhere near the $75 level, maybe even $76, I think you would see buyers coming in to take advantage. If we can break above the $79 level, then the $80 level gets targeted.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same. A move above $82 opens up a move to $84. A short-term pullback should see plenty of support near $80 and then again at $79. I think at this point in time, the oil markets don’t really know what to do because it is travel season and cyclically, we are typically fairly bullish this time of year.

But at the same time, it looks like the economy globally is starting to slip. Concurrently, you also have plenty of tension around Israel and the greater Middle East as a whole. So, it all comes together for plenty of volatility.

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