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Crude Oil Price Forecast – Crude Oil Markets Continue to Build Base For Launch

By:
Christopher Lewis
Updated: Jun 20, 2024, 16:03 GMT+00:00

The crude oil markets rallied slightly during the early hours on Thursday as it looks like we are building a bit of a base for the next swing higher. At this point in time, I remain bullish on this market.

In this article:

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market rallied slightly during the early hours on Thursday as it looks like leaving the $80 level in the back seat is probably going to continue to be the way forward and I do think that we are going higher. Ultimately, I do think that we probably go looking to the $82.50 level, with the $80 level being a bit of a short-term floor. If we were to break down below there, then I think you have to look at various other levels, but for now it looks like a market that is generally going to be looking to the upside.

Brent Crude Oil Technical Analysis

In the Brent market, it’s very much the same situation, although in this case, the support is nearly $84. If we can continue to take off to the upside, then $87 is a very real possibility. And we have to look at this through the process of a market that has built a massive basing pattern and is now ready to enjoy the fruits of that.

Keep in mind this time of year is typically very bullish and therefore I think the cyclicality comes into play, but also you have a lot of geopolitical concerns in the Middle East that will continue to keep a little bit of a floor underneath oil to begin with. With central banks around the world cutting rates, they are only going to push prices higher in most commodities and that includes this one. So as economies get stimulated, they’ll need more energy of course, this time of year is bullish anyway, so it all lines up for an overall positive market.

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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