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Crude Oil Price Forecast – Crude Continues to Bounce Around

By:
Christopher Lewis
Published: Apr 17, 2024, 13:40 GMT+00:00

Crude oil markets continue to bounce around in a consolidation area, as the market has a lot of external factors pressuring it.

In this article:

WTI Crude Oil Technical Analysis

The West Texas Intermediate market fell significantly during the early hours on Wednesday, as it looks like we are going to give up quite a bit of momentum. The question, of course is this, has anything changed? Well, no, it hasn’t.

Ultimately, we are in the midst of consolidation and even if we do get some type of pullback, there are plenty of buyers underneath. The geopolitical situation alone dictates that we should probably have higher oil pricing. And at this point, I think each dip offers a short term buying opportunity.

That doesn’t necessarily mean that you get a huge position going, but I do think that we continue to go higher, not only due to geopolitics, but also the fact that the driving season is among us. There are threats of the Americans digging into the Strategic Petroleum Reserve, but quite frankly, President Biden emptied that last year, so it can only do so much.

Brent Crude Oil Technical Analysis

Brent markets also have fallen toward support but at this point I suspect that there’s probably some buying pressure just waiting to happen. $90 above continues to be an area of contention, and overall, this again is a buy on the dip market.

If you are cautious about your position size, you can get away with doing that because in the longer term the trend is more likely than not higher. That being said, keep in mind that crude oil is moving with the latest headlines coming out of Israel, Gaza, Iran, etc. So, with that being the case, you have to be cognizant of what’s going on in the news, and as things have calmed down a little bit, some of the risk premium might be taken out of the market. Nonetheless, this is still a very strong market and supply is going to be an issue.

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

About the Author

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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