Crude Oil Price Forecast – Crude Oil Markets Stagnant

Crude Oil Prices Forecast Video for 02-01-2024

WTI Crude Oil Technical Analysis

In the WTI market, you can see that we’ve done very little on Friday as we are essentially between two major levels. The $75 level above is significant resistance, as seen over the last couple of days. And underneath the $68 level is the beginning of massive long-term support. I think what we’re seeing here is a market that’s trying to search for buyers and stability. Longer term, we could turn around and start to take off to the upside, but I think we have some work to do.

It makes sense that it would not happen at the very end of the year, at least not enough to turn the market around because quite frankly, there’s just not enough liquidity. There are some questions when it comes to supply or oversupply and demand. If the economy is going to slow down, demand for crude oil will slow down as well. That being said, if the Federal Reserve is going to throw a lot of liquidity at the markets, then the idea is of course economic activity picks back up.

Brent Crude Oil Technical Analysis

In the Brent market, we are currently right around $77 with the $80 level above being resistance and the $72 level below being long-term support as well. It’s very likely that we will eventually find buyers again. But the question is, will this be an accumulation phase like seen back in May of 2023? I anticipate that very well could be the case based on longer term charts. You will have to be cautious with your position sizing, though, because getting too aggressive at this point in time could be very costly.

Smaller than usual positions and then building up as the market works out in your favor is always a good idea. But it’s especially true when we are at a potential trend change or major inflection point. This comes down to the idea of central banks boosting the economies. And if that’s the case, then it should, at least in theory, help oil. That being said, there are no guarantees but keep in mind that this is an area where we have seen a lot of interest previously.

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