Crude Oil Price Forecast – Crude Oil Markets Continue to Look Bullish

Crude Oil Prices Forecast Video for 26-01-2024

WTI Crude Oil Technical Analysis

The crude oil market rallied early during the trading session on Thursday, so it looks like we are trying to break out to the upside. After all, the markets have been basing for a while and now I think we have a real shot at oil taking off to the upside, perhaps trying to do everything it can to recover, maybe due to the idea that central banks around the world are going to loosen monetary policy.

Maybe it has to do with the fact that there are attacks in the Red Sea that affect production, or maybe it’s also due to a couple of refineries being shut down, at least in the short term. Either way, it doesn’t really matter because what we do see is a market that has broken above a barrier, and now it looks like we are trying to go look into the 200-day EMA. Short-term pullbacks at this point in time in WTI, I believe, are buying opportunities with the 50-day EMA sitting just below $75, perhaps offering a bit of support.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same, testing the $80.50 level, and it looks like we are breaking out at this point. Ultimately, I think this is a situation where we eventually go looking to the 200-day EMA above, and I think that 200-day EMA will be a bit of a target.

Short-term pullbacks at this point in time will continue to be buying opportunities in Brent as well and of course, both markets do tend to move in the same direction. I think we have been consolidating for a while, trying to build up some type of accumulation phase and we are in the process of perhaps seeing it try to break to the upside. If the economy does end up being at least decent in 2024, then oil will continue to go higher.

We have an oversupply of oil at the moment as far as production is concerned, but that may be shifting and if we get loose monetary policy coming out of all of the major central banks around the world, that will cause more demand due to more business being transacted. So, it’ll be interesting to see how this plays out, but it certainly looks like we are ready to go higher.

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