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Crude Oil Price Outlook – Crude Oil Continues to Rally and Recover
Published: Jan 6, 2025, 14:51 GMT+00:00
The crude oil market is rallying in the short term and looks like it is ready to continue for a longer term move. Ultimately, this is a market that will continue to see strength as interest, demand and economy will push this market.
In this article:
WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil Market rallied a bit during the trading session in the early hours on Monday, as we continue to stretch this move to the upside. That being said, we are seeing a little bit of hesitation here, which makes sense as we are right around the 200 day EMA. And of course we have rallied quite a bit recently.
Short-term pullbacks, I do think happen and I do think they attract buyers. I’d be especially interested near the $72 50 cents level assuming that we even get that pullback. But we may also go sideways for a while in order to work off some of this froth. To the upside, we could go look into the $78 level before it’s all said and done, and then eventually the $80 level. I do think that inflation and energy demand both are going to pick up, thereby driving up the price.
Brent Crude Oil Technical Analysis
The Brent market is now approaching the 200 day EMA, and it looks very similar to the West Texas Intermediate Crude Oil market as you would expect. I think short-term pullbacks are buying opportunities in a market that has been very noisy, but very strong over the last week or so. I don’t have any interest in shorting Brent, nor do I have any interest in shorting any other form of oil. I think at this point we may get a little bit of a pullback based on the 200-day EMA, but that should be thought of as a nice opportunity. All things being equal, it would not surprise me at all to see Brent go looking to the $81 level over the next several weeks.
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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