Crude Oil Price Forecast – Crude Oil Dropps to Kick Off Thursday

Christopher Lewis
Published: May 30, 2024, 13:31 GMT+00:00

Crude oil markets sold off in the early hours on Thursday, as the traders continue to fight the overall cyclical pattern that traditionally moves the market.

In this article:

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market pulled back a little bit during the course of the early hours on Thursday. But really, at this point in time, we are in the midst of a major consolidation area.

So, I do think buyers will come back sooner or later. Keep in mind that this time of year is extraordinarily busy, and a lot of travel happens and therefore making crude oil demand spike. This is why I’m actually somewhat bullish on this market. And it’s also worth noting that we shot straight up in the air, pulled back to the middle of the consolidation pattern.

Brent Crude Oil Technical Analysis

And now we wait for the numbers to come out on Friday, which might have an influence on the dollar. So, this might be a little bit of a cross current type of situation. Brent looks the exact same really at this point in time. I am looking for value to take advantage of and would not hesitate to buy if we drop a little bit lower.

Given enough time, I do think that both crude oil markets break out to the upside, perhaps gaining as much as $10 over the course of the next several months. That being said, oil is notoriously volatile and choppy and erratic. So, with all of that being said, I think you’ve got a situation where you have to look at this through the prism of is it offering value?

And right now, it is. The next step is do we have momentum for a bounce to the upside? Once we have both of those then it’s time to start buying again. But I don’t know if the move is going to be smooth. It just doesn’t seem like it can be.

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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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