Crude Oil Price Forecast – Crude Oil Markets Bounce Early in The Session

Crude Oil Prices Forecast Video for 04-01-2024

WTI Crude Oil Technical Analysis

The WTI market initially pulled back just a bit during the trading session on Wednesday. As we then found buyers yet again, as I think this market is trying to sort out some type of range, the $68 level underneath seems to be the beginning of massive support for the West Texas Intermediate market with the $75 level being significant resistance. We will be paying attention to the Friday jobs report, that will have its own influence as well, but ultimately, I think this is a scenario where the market is probably just going to continue to bounce around in this range in the foreseeable future. Obviously though, you need to keep in mind that there are a lot of attacks in the Red Sea that could move the market rather rapidly.

Brent Crude Oil Technical Analysis

Brent markets did very much the same with the floor being on the $72 level and the ceiling being on the $81 level. Keep in mind that the 50 day EMA is near the ceiling, so that adds more credence to it. And the fact that Wednesday has seen such a massive turnaround tells me that people are out there trying to pick up cheap oil. Oil markets, of course, are going to be very sensitive to the overall economic outlook, which is a bit mixed, although a lot of people are starting to focus on the idea that the Federal Reserve is going to loosen monetary policy next year, or this year, and therefore, economic demand will start to pick up.

Whether or not they actually pull that off remains to be seen. And of course, there are a lot of geopolitical issues with transportation of oil through the Red Sea right now as there have been multiple attacks on shipping. All of this considered, it’ll be interesting to see how this plays out, but we are at a historically supportive area, so it does make a certain amount of sense that we at least attempt to bounce rather hard from here.

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