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Crude Oil Price Forecast – Crude Oil Continues to See Noise
Published: Jul 11, 2024, 13:41 GMT+00:00
Crude oil markets have drifted a little lower, as the market continues to try to test and judge if the economy is going to remain growing, or if it is going to roll over. This is a market that is going to remain noisy for a whole plethora of reasons.
In this article:
WTI Crude Oil Technical Analysis
The West Texas Intermediate crude oil market drifted a little bit lower during the early hours on Thursday, as we continue to look for some type of support. All things being equal, this is a market that I think eventually does turn around, and it’s probably worth noting that the latest inventory numbers did fall. So that suggests that we are, in fact, using oil. That makes sense. We’re in the midst of summer travel season, so I would anticipate that we still have a little bit of a natural flaw in this market, in this type of environment, and this time of year.
It’s very likely that we will continue to see a lot of support near the $80 level. But I think if we can break above the $82 level, then it’s likely that we could go looking to the $83.50 level. I have no interest in shorting WTI, at least not any time soon.
Brent Crude Oil Technical Analysis
The Brent market, of course, has shown itself to be a little bit soft in the early hours as well. But I also think we have plenty of support in Brent, especially near the $83.50 level. All things being equal, this is a market that given enough time should rally as well. And I do think that Brent will go looking to reach the $87 level again. Crude oil demand should continue to be strong for the next couple of months.
And of course, beyond all that, we have plenty of geopolitical risks out there. Although right now supply doesn’t seem to be threatened, things could flare up quite rapidly in the Middle East. You just don’t know. Furthermore, we do have some damage to Russian refineries, and although the West doesn’t directly buy Russian oil, they do through backdoor channels. So, with all of that being said, I do think it makes an argument that oil should continue to climb, but I don’t necessarily think it’s going to melt up. I think it’s just going to have more of a natural proclivity to be bought on dips.
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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