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Crude Oil Price Forecast – Crude Oil Continues to Find Buyers

By:
Christopher Lewis
Published: May 28, 2024, 13:34 GMT+00:00

The crude oil market is currently in the process of forming some kind of bottom or base, and at this point we have a few levels worth paying attention to in these markets.

In this article:

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market has rallied a bit to reach the $79 level, perhaps opening up the possibility of a move to the $80 level. I think short-term pullbacks will continue to be buying opportunities and I will treat them as such. The West Texas Intermediate Crude Oil Market has taken quite a bit of a beating but now it looks more and more like we are trying to form a basing pattern. It’s almost like a beach ball being held underwater. And once we break that $80 level, it should spring much higher.

There are a litany of things that could cause oil to rally from here. Number one, the cycle in the year, typically we get more demand this time of year, but we also have to pay attention to geopolitics. We’re a long way away from having a calm Middle East. It’s kind of eerie how little the market has taken that into account, which tells me that the surprise of a really bad announcement or a newsflash coming across the wires is going to have an outsized effect. Either way, I’m not a seller. This is an area that’s been significant support multiple times.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same. We now have a level at $84.50 that if we can overcome, Brent could really start to take off. At that point, I would anticipate a move to the $87 level. Short-term pullbacks should continue to see plenty of buyers, and I do think that given enough time, we will have buyers come into this market to take advantage of cheap oil. We’ve already started to see it over the last three or four days. So really at this point, I do think we’re in the process of bottoming. I like the idea of buying dips and I will continue to do so, although I’m not going to get aggressive until we break out above that $84.50 level.

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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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