Crude Oil Price Forecast – Crude Oil Markets Drift Lower

Crude Oil Prices Forecast Video for 16-01-2024

WTI Crude Oil Technical Analysis

WTI has dropped a bit in limited trading on Monday as it was Martin Luther King Jr. Day in the United States, so the futures markets weren’t completely open for the 23 hours they typically are. That being said, it looks like we are heading right back into the middle of the overall consolidation, which makes sense considering that the market really doesn’t know what to do about attacks in the Red Sea, interest rates, geopolitical concerns, possible recession, the US dollar, and a whole host of things.

At this point in time, it’s really difficult to get overly big in any particular position and oil, of course, won’t be any different. The West Texas Intermediate crude oil market is essentially between two major barriers, one, of course, is the support level underneath at $68, and the other is resistance at $75. With that being the case, we are essentially at fair value, making it a very neutral market.

Brent Crude Oil Technical Analysis

Brent is very much in the same situation as the WTI crude oil market. We have the $80.50 level above offering significant resistance, while the $72 level underneath offers significant support. As we are hanging around $77, we are essentially right in the middle of all of the noise again. I do like the idea of buying dips in the crude oil markets, but I would like to see a little bit more value proposed.

Ultimately, I think this is a situation where the market will eventually turn around, but right now, there’s just so much uncertainty and concerns about recession that it’s very difficult. And of course, we have a lot of supply to get this market really taking off to the upside. In the meantime, I think it’s more or less going to be a bit of an accumulation phase.

In general, I think oil is going to be a very difficult market to trade for longer-term trades, but if you are a range bound trader, this might be an excellent market for you. As things stand right now, we are right dead in the middle of the range, thereby making it essentially “fair value” and a neutral market.

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