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Crude Oil Price Forecast – Crude Oil Falls Hard on Friday

By:
Christopher Lewis
Published: May 31, 2024, 16:15 GMT+00:00

Crude oil markets have been hit hard on Friday, as we continue to see a lot of concerns about the economy creep into the picture. Friday has see a couple of bad economic numbers in the US, which has jarred the markets.

In this article:

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market plunged a bit during the trading session on Friday as we have gotten softer than anticipated economic numbers, suggesting that there may not be as much demand. It’s almost as if nobody knew the economy was softening at least nobody that buys things in the markets. Anybody who’s been outside, you know, it just is what it is. So, with that being said, I think you’ve got a situation where we are going to have to watch this bottom underneath near the $76.50 level to see if it holds.

If it does hold, then we may have a buying opportunity because I do think there is a cyclical trade to be had here, but this is pretty brutal, and it’s not just oil that’s selling off silver is getting absolutely pummeled. The stock market just won’t stop falling. So it’s almost like Wall Street suddenly realized the economy is struggling, which is weird because those of us out here in the real world have known this for at least a year and a half. So, with this, I think we have a real test coming up and we’ll have to pay close attention to the $76 50 cents level in the WTI market to see if it holds.

Brent Crude Oil Technical Analysis

I would not get involved right now. Brent markets look very much the same and the $80 50 cents level for me is the bottom. I think we need to pay close attention to it because if we break down below there, then it could really open up the barn doors as it were, and we could really start to flood to the downside. If we get a nice bounce, then it is something worth paying attention to, but this is something I need to see if it can probably carry through Monday to get overly excited because one thing is for sure, there’s a lot of palpable panic out there right now.

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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