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Crude Oil Price Forecast – Crude Drops Again on Wednesday
Published: Apr 30, 2025, 14:06 GMT+00:00
During the Wednesday session, we saw both grades of crude oil that I follow. FX Empire test the lower part of the recent range. All things being equal, this is an area where you would expect to see support come into the picture, but we just don’t have any reason to see momentum pick up quite yet.
WTI/CL Technical Analysis
The light sweet crude market broke below the $60 level in early trading on Wednesday, but we have seen a little bit of a bounce. This is interesting because this is an area that goes back several years really and it’s important. And therefore, I find it definitely something worth paying attention to, as we have so much in the way of interest in this area, historically speaking. Ultimately, I think this is a market that given enough time, you will have to recognize that the future global growth situation is what’s really spooky in the market.
And with GDP in America coming out lighter than anticipated during the day, that only puts more pressure on the markets. However, sooner or later, somebody’s going to get the idea that the Federal Reserve is going to cut. And that typically lifts the price of crude oil. This is a major inflection point that must be watched. I think we are about to see a big move one way or the other. But if we do start to rally, I think there’s a lid on the market somewhere near the $65 level.
Brent Technical Analysis
Brent, of course, has fallen right along with the CL contract. But at this point in time, we are not at the major support. We are a little bit above it, but it is worth noting that the buyers have jumped back in anyways. So, with that being the case, I look at this as a market that probably is trying to hang on to its range and it very well might be able to give enough time. However, I also recognize that there is a lot of downward pressure above. So, I think the gains are somewhat limited at the moment. We do need a catalyst. We just don’t have one yet, but we’re in a technical area where you would expect somebody’s going to try to push this thing higher sooner or later.
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About the Author
Christopher Lewisauthor
Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.
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