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Crude Oil Price Forecast – Crude Oil Deals With Ukrainian Attack

By:
Christopher Lewis
Updated: Jun 21, 2024, 16:28 GMT+00:00

During the trading session on Friday, there was a drone attack on a Russian refinery via Ukraine, causing quite a bit of noise in the crude oil market. That being said, we are still very much a market that is trying to grind higher in general.

In this article:

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market has been all over the place during the early hours on Friday as a drone attack from Ukraine on various Russian refinery equipment has caused a little bit of panic, but it looks like we’ve settled down since then. Ultimately, this is a market that I think still sees a lot of support near the $80 level.

And therefore, any pullback at this juncture, for me at least, is going to be a buying opportunity. Over the longer term, I do expect the WTI market to go looking to the $82.50 level, and inflation hotter than expected in the United States, of course, is going to influence us as well. The Fed is likely to be tighter for longer. Evidently Wall Street just learned that there’s inflation today. So at this point in time, I do believe that eventually crude oil has to climb as a result. I am a buyer of dips.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same. It looks like the $84.50 level will continue to offer support, and I do think that eventually we could go looking to the $87.50 level. However, we are in the middle of summer chop, and therefore we are going to see a lot of nonsensical behavior. Short-term dips, I think, offer buying opportunities. I have no interest in shorting a market that just broke out of a major resistance barrier, although, admittedly, it doesn’t seem like it wants to go anywhere. With this, I’m positive on the market, but I’m not necessarily aggressive, so I do think we grind higher over the summer.

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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