Crude Oil Price Forecast – Crude Oil Markets Takeoff

Crude Oil Prices Forecast Video for 19.12.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has rallied a bit after initially dropping on Monday, as it looks like we are going to continue to see the crude oil markets recover. There are a handful of reasons why we could be going higher, not the least of which would be the fact that the Federal Reserve looks set to cut interest rates. If they do so in 2024, the thinking of course is that they are going to inflate the economy, and thereby drive up demand for crude oil as people begin to get more aggressive with their purchases and investments. That being said, there’s also the possibility that this is simply short covering heading into the new year at the same time, so I don’t know if we are going to take off straight up in the air. It is worth noting however, that the market has been approaching a very significant longer-term support level.

Brent Crude Oil Technical Analysis

Brent markets also rallied rather significantly during the trading session and will more likely than not continue to do so. Because of this, I think the short term “buy on the dips” mentality comes into the picture, but I also recognize that liquidity is going to be a bit of an issue for the next 2 weeks or so. With that in mind, I’m looking for value to take advantage of, after having a perfect weekly set up based on a hammer.

Whether or not we can continue to go higher in the next couple weeks remains to be seen but it certainly looks as if the upside has more potential than the downside. With that in mind, I think you’ve got a situation where a loose monetary policy will favor risk assets such as crude oil, and of course the idea that we will start to see more momentum in the economy as the Federal Reserve looses financial conditions. We had been pricing in some type of massive recession, so it will be interesting to see if that thought process comes back anytime soon. If it does, we could see oil do a complete turnaround.

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