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Crude Oil Price Forecast – Crude Oil Continues to Build Bullish Case

By:
Christopher Lewis
Published: Feb 26, 2024, 14:40 GMT+00:00

The crude oil markets during the early hours on Monday dropped a bit, but then turned around to show signs of life.

In this article:

WTI Crude Oil Technical Analysis

The US oil market has bounced a bit from the 50 day EMA early on Monday as we continue to see plenty of support right around the $76 level and of course the 50 day EMA. With that being said, this is a market that is trying to build up enough momentum to take off to the upside. And I do think that it is probably only a matter of time before we put a serious dent into the $80 level above, which has been like a brick wall. Short term, I think we continue to see a lot of noisy behavior, but with this being said, the market is likely to continue seeing more of a buy on the dip attitude, especially now that the market is starting to focus on spring, which is typically a heavier demand season.

Brent Crude Oil Technical Analysis

Brent looks very much the same, although it did gap lower to kick off the trading session, but it is also bouncing from the 50 day EMA, showing signs of life. If we can rally from here and take out the $84.50 level, which admittedly is rather far away, then we could go much higher, perhaps reaching the $92 level. Underneath, I think there is still plenty of support near the $80 level, and therefore I think this is a situation where we just don’t have a reason to short oil anymore. That doesn’t necessarily mean that it has to go straight up in the air, but it does look like both grades are forming some type of rounded bottom, and of course, we have more demand coming.

Supply has been dwindling as well, and of course there’s tension in the Middle East, so it all lines up for oil perhaps taking off to the upside. Furthermore, you have to keep in mind that central banks are likely to loosen monetary policy, and a lot of the time that will stimulate growth, which of course, will drive demand for energy up.

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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