Crude Oil Price Forecast – Crude Oil Pulls Back on Thursday

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market pulled back a bit again during the trading session on Thursday in the early hours as we are testing the crucial $67.50 level. This is an area that I think has a certain amount of importance due to the fact that we had seen the reaction previously.

And of course, we are getting dangerously close to the bottom of the last couple of years where we had bounced from previously. I do think a lot of things are going on at the same time, not the least of which is the fact that there are questions about demand going forward. And the labor market looks a little bit soft in the United States.

Brent Crude Oil Technical Analysis

In the Brent market, we have fallen a bit during the session on Thursday as well, but we are maintaining some of the bounce that we had seen on Wednesday, so it does suggest that there are buyers underneath. Whether or not we can hang on to the $70 level remains to be seen, but as long as we do, I think there’s a real shot that this market rallies and tries to get above the $72.50 level.

Either way, I would expect a lot of volatility due to the fact that there are plenty of geopolitical concerns out there, not to mention that there are plenty of demand concerns as it looks like the global economy is starting to look a little bit sluggish with central banks around the world seemingly needing to cut rates. Cutting rates can spur economic activity, but with the Federal Reserve cutting 50 basis points in one shot, historically speaking, that’s not a good sign.

For a look at all of today’s economic events, check out our economic calendar.