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Crude Oil Price Forecast – Crude Oil Drops Hard in The Early Hours
Updated: Sep 3, 2024, 16:17 GMT+00:00
The crude oil market has fallen hard in the early hours of Tuesday, as the markets continue to see a lot of volatility, and of course concerns as it now looks like the Chinese demand dropping is being priced in.
WTI Crude Oil Technical Analysis
The crude oil market in early Tuesday trading has fallen and a lot of this comes down to the idea of demand falling quite drastically. You can see that the West Texas Intermediate Crude Oil Market has broken through the $71.50 level, showing signs of significant weakness. That being said, I do think that the $70 level will probably offer a bit of support, so it’ll be interesting to see how that plays out.
The market breaking down below $70 would be very negative indeed. And at that point, I think you really start to see this thing fall apart. On the other hand, if we can turn around and break back above the $72.50 level, then you have a real shot of the market taking off to the upside and going much higher, perhaps reaching the $73.50 level.
Brent Crude Oil Technical Analysis
The Brent market looks very much the same. We are now below the $75 level, and I think you’ve got a situation that we probably at this point in time might be looking at $72.50 for some type of support. All things being equal, this is a market that I think continues to be noisy and very difficult to really jump in and try to buy after this recent fact that the market of course eventually runs into a scenario where it just gets too cheap. There is a lot of concern right now about demand and it looks like Chinese demand is slowing so that really has sent the market reeling to the downside during this session.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Christopher Lewisauthor
Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.
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