Crude Oil Price Forecast – Crude Oil Markets Pull Back From Short-term Ceiling

Crude Oil Prices Forecast Video for 24-01-2024

WTI Crude Oil Technical Analysis

Crude oil markets initially tried to break out during the early hours on Tuesday but have given up some of the momentum. Crude oil is a very interesting market at the moment because it has been very choppy, but at the same time it looks like it’s trying to form some type of basing pattern in order to turn the overall attitude around. If that kicks off remains to be seen, but it certainly looks like there is a lot of stubborn buying pressure underneath.

However, there isn’t enough fundamental reasoning to go higher for a longer term move quite yet. With this being the case, the market is likely to continue seeing pullbacks, but those pullbacks are increasingly bought into. The WTI grade shows the $75 level as a major resistance barrier, but if we can break above there on a daily close, then I think the 200-day EMA gets targeted. Underneath, I see support at the $71 level and most certainly a bit of a floor at the $68 level.

Brent Crude Oil Technical Analysis

The Brent markets have also pulled back a bit and are also wrangling the 50-day EMA indicator. The $80.50 level seems to be a major resistance barrier above and we are shying away from it. However, I see a significant amount of support underneath at the $77 level, and then again at the $75 level. The absolute floor in the Brent market is closer to the $72 level.

Crude oil is going to be a very interesting market in 2024 because there are a lot of questions about supply and demand. There are attacks in the Red Sea that can disrupt supply, but at the same time, we are still producing about 3 million barrels more per day than needed, mainly due to drilling in the United States. So therefore, it bypasses all of those concerns around the world.

Having said that, if the Federal Reserve and other central banks around the world are going to continue to look to loosen monetary policy, that should increase economic activity and therefore drive up demand for petroleum.

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