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Crude Oil Price Outlook – Crude Oil Plunges Early on Monday
Published: Nov 11, 2024, 14:43 GMT+00:00
The crude oil markets got hit hard in the early hours of Monday, as we continue to see a lot of volatility. This is a market that will continue to see a lot of questions asked about the floor underneath, as the market continues to see the bottom of the range as important.
In this article:
WTI Crude Oil Technical Analysis
The West Texas Intermediate crude oil market has fallen a bit during the early hours on Monday as we continue to see a lot of noisy and shaky behavior. Keep in mind that there are a lot of concerns about demand, but with the Donald Trump and Republican election in the United States, there’s a real possibility that the United States starts drilling quite drastically. One of the number one provisions of his government, or goals I should say, is to make the United States energy independent and dominate.
Most traders don’t know this, at least most retail traders don’t know this, but the United States has a much natural gas alone to power the world by 300 years or so, and a massive amount of oil. In other words, we may see a lot of supply flood the market in the future, and I think that’s part of what’s going on here. But at the same time, quite frankly, the West Texas Intermediate Crude Oil Market likes bouncing around in $10 ranges. We are approaching pretty significant support at the $65 level. So, I do think the downside, at least for the time being, is somewhat limited.
Brent Crude Oil Technical Analysis
The Brent market looks very much the same. $70 underneath will be your support level, while the $80 level above will be resistance. If we break down below $70, it could open up a move down to $65. This is yet another sign of concerns about global demand. But when you look at the market itself, this is an area that we have been testing for about a year and a half and did several times before that. So, I think sooner or later, it’s a technical signal to start buying oil again. But right now, it looks like we need to drift a little lower to get to that point. I would not be short of oil, there’s no point in chasing the trade.
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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