Crude Oil Price Forecast – Crude Oil Continues to Look For Buyers

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market fell to test the $80 level during the early hours on Wednesday, which does make a certain amount of sense as we had been falling toward that support level anyway. Furthermore, we also have to keep in mind that the FOMC meeting on Wednesday will have a major influence on what happens next.

And as a result, you’re probably more or less in a holding pattern. That being said, this is technically an area I’d be interested in buying, but you can’t get overly exposed at this point because quite frankly, the uncertainty out there will continue to be a major issue for not only oil, but just markets in general. This is obviously an area that previously had been resistance before, so market memory could come into the picture.

Brent Crude Oil Technical Analysis

Brent markets also fell to reach down to the $84.50 level, where we had seen previous resistance and have bounced from there. Whether or not they can maintain this strength, we’ll have to wait and see, but right now it certainly looks like a market that is doing everything it can to recover. It could go as high as $90, and of course you have to keep in mind that markets right now have to worry about a whole litany of things, not the least of which would be conflict in the Middle East.

However, the demand question comes into focus as well, as we have recently seen a little bit of an inventory build, something that of course is patently negative. With this being the case, I think you continue to see volatility, but there’s a lot of technical support here.

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