Crude Oil Price Forecast – Crude Oil Continues to See Volatility

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market has gone back and forth during the course of the early hours on Thursday as we continue to hang around the $74.50 level, there is a lot of support underneath, extending all the way down to the $71.50 level. Breaking down below there then opens up the possibility of a move to the $67.50 level. But ultimately, this is a market that I think has gotten a bit oversold.

So, it does make a certain amount of sense that with the massive geopolitical complications that we have in the Middle East right now, sooner or later traders come in to try to pick up oil. There is a major concern about a global slowdown, and that of course works against the idea of demand, and that’s exactly what you’ve seen play out over the last several weeks.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same as we continue to hover around the $78 region. If we can break above say $78.50, then the market could continue to go towards the $81.50 level. On a pullback, there is plenty of support all the way down to at least the $75 level. And then after that, we have a major long-term support level at the $72.50 level.

Just as we have seen in the West Texas Intermediate Grade, Brent has been punished for a couple of weeks now due to the idea that the global economy is cooling. Nonetheless, there is a certain amount of cyclicality to the market, and we are in high season, so It’ll be interesting to see if we get a good bounce.

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