Crude Oil Price Forecast – Crude Oil Looking For a Bottom

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Published: Sep 10, 2024, 14:23 GMT+00:00

The crude oil market is in trouble, serious trouble. At this point in time, it is desperately hanging onto the last vestiges of support, trying to bounce. This market is trying to price in the idea of a complete collapse in economic growth, and traders should be paying close attention to this sector, even if not trading it.

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market has found support near the $67.50 level and I think at this point, we are trying to determine whether or not this massive floor can hold. After all, this is a scenario where traders will continue to look at this through the prism of a market that is at the bottom of a longer term consolidation.

And whether or not we can hang on to this is going to come directly in the form of whether or not people think demand will continue to fall off. If economic growth continues to be anemic and gets worse, that obviously works against crude oil. If we get some type of sign of economic growth and can clear the $69.62 level, then I think we could go looking to the $71.50 level.

Brent Crude Oil Technical Analysis

The Brent market of course looks very much the same as it’s flirting with the $71 because at this point in time, this is a market that also suffers from a lot of concerns about global growth and perhaps some of the geopolitical tensions that people had been so worried about have somewhat drifted into the background. If that’s the case, we need growth and we need economic acceleration to pick up the oil market. Otherwise, we could break down rather significantly, and perhaps see a massive “risk off scenario” play out in the overall markets.

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.