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Crude Oil Price Forecast – Crude Tries to Bounce From Extreme Low
Published: Aug 22, 2024, 13:57 GMT+00:00
The crude oil market continues to see a lot of noisy behavior, as the markets have seen yet another lackluster inventory report in the US. This suggests that the market will perhaps continue to see demand drop a bit.
In this article:
WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil Market has bounced a bit from the crucial $71.50 level after getting slammed late on Wednesday due to an inventory figure. And now they are very concerned about the whole idea of whether or not there’s going to be enough demand. If a slowing economy is in fact coming, that does make a certain amount of sense that oil will suffer.
A short-term rally is possible from here, but I think getting above $75 is a pretty tall order. We did bounce about 50 cents in the early part of the day, so we’ll have to wait and see if this bottom holds. If it doesn’t, then the market could drop to the $67.50 level. With that, I think you’ve got an even more solid floor in the market. Really at this point, it’s a short-term trading environment at best.
Brent Crude Oil Technical Analysis
Brent markets are very much the same, bouncing from the $75.50 level, an area that’s been important more than once. If we can rally from here, the $77.50 level is a potential target and then after that we could be looking at the $79 level. That being said, Brent also is going to have a demand concern and of course at the same time we do have geopolitical concerns, but right now it doesn’t seem like the war in the Middle East is flaring into a regional conflict, at least not at this point. This of course could throw the market into chaos and disarray if it changes, but so far we haven’t seen that.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Christopher Lewisauthor
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.
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