Crude Oil Price Forecast – Crude Oil Markets Continue to Attempt Recovery

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Published: Dec 14, 2023, 14:01 GMT+00:00

Crude oil markets have rallied rather significantly during the course of the trading session again in the early hours of Thursday, as it looks like we are trying to form some type of bottom.

Crude Oil Prices Forecast Video for 15.12.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market rallied rather significantly during the course of the trading session on Thursday as it looks like we are trying to build some type of base to go higher. All things being equal, the oil market might be getting a little bit of a boost due to the idea that central banks are loosening monetary policy, specifically the Federal Reserve, and therefore people start to bet on things that are not US dollars, and the possibility that we will start to see demand pickup as the economy gets charged via central bank policy.

That being said, it doesn’t necessarily mean that it’s going to be the easiest move to ride on the way out, but I think the market is trying to sniff out the idea that perhaps economic help is on its way, and therefore I think crude oil will probably be one of the beneficiaries.

Brent Crude Oil Technical Analysis

Brent markets also look very bullish today, and now it looks as if we are trying to see some type of rally, with the short-term barrier being the $77 level. The biggest problem with this trade to the upside will be the fact that you will have to be able to ride through a lot of volatility, and the fact that liquidity may disappear between now and New Year’s Day. All things being equal, this is a situation where traders are bent on loose central bank policy to help the idea of demand for energy, as the Federal Reserve has already pivoted.

All things being equal, we have a couple of rough weeks ahead of us, but it looks like we might be trying to find some type of floor in this market. It might be a situation where the real momentum comes at the beginning of next year, but then again with a lack of liquidity in the next few weeks, we may see a sudden and erratic move. I think we are much closer to the bottom then we are to the top at this point.

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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.