Crude Oil Price Forecast – Crude Oil Markets Continue to Define a Range

Crude Oil Prices Forecast Video for 10-01-2024

WTI Crude Oil Technical Analysis

Crude oil rallied during the trading session on Tuesday as we continued to bounce around in the same consolidation area. The WTI grade has risen above the $72.50 level in early New York trading, and it looks like we could go looking toward the $75 level above, which has been significant resistance. Not only has it been resistance, but we have also seen the 50 day EMA reach that level as well. With that being said, I think it’s going to take quite a bit of effort to get above there.

Because of this, I think it is going to take some type of catalyst to break above there. In the meantime, I think we’re just bouncing around in this area between $70 and $75, with the $68 level underneath offering even more support. As things stand right now though, I just don’t see us breaking out of this very easily. I suspect that 2024 is going to be very choppy for the crude oil market and perhaps even a “tale of 2 halves.”

Brent Crude Oil Technical Analysis

Brent markets also rallied during the trading session as we continue to see a similar behavior in this market. Breaking above the $77.50 level, the 50-day EMA sits just below the $80.50 level, which I think is a significant resistance barrier in this pair. The market will continue to see a lot of noisy behavior, and I think at this point, we’re more or less looking at accumulation.

Longer term traders are probably buying oil with the idea that eventually it’ll break out to the upside. Underneath the market sees a lot of support at the $72 level, so please keep that in mind. I think short term traders are going to continue to kick around both Brent and the WTI market in a side to side action until we get some type of longer term catalyst. Sure, there are concerns about economic demand, but at the same time, there’s also concerns about the shipping lanes in the Red Sea being attacked.

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