Crude Oil Price Forecast – Crude Oil Continues to Find Buyers on Dips

Christopher Lewis
Published: May 24, 2024, 15:24 GMT+00:00

The oil markets found a little bit of support on Friday, gapping higher to kick off the session. This is a market that has been weathering a bit of a storm lately, and therefore it has proven its resolve.

In this article:

WTI Crude Oil Technical Analysis

This is the West Texas Intermediate crude oil market and you can see that the market has gapped higher to kick off the trading session. And it now looks like we are trying to recapture the 50% Fibonacci retracement level that had been important previously.

With that being said, I like the idea of paying close attention to whether or not we can clear the $78 level, because I think that allows the market to go looking to the $80 level. I am starting to wonder whether or not and you can look on futures charts as to whether or not the sell off here was a little bit capitulatory.

Brent Crude Oil Technical Analysis

And I’m starting to suspect that Brent looks very much the same. If we can take the $82.50 level back again, then we could go to the $84.50 level. We are in summer driving season, so it does make a lot of sense that crude oil will continue to rally. Furthermore, we have a lot of geopolitical issues out there that could continue to push this market higher.

So, I don’t have any interest in shorting anyways. I haven’t this entire time, at least not over the last couple of months. I think ultimately you have a market that does go higher and perhaps reaching as high as $90 and Brent and of course dragging the WTI grade right along with it. I have no interest in shorting oil now, not this time of year. And I believe inflation is just going to show itself in petroleum like it is everything else.

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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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