Crude Oil Price Forecast – Crude Oil Markets Continue to Consolidate

Crude Oil Prices Forecast Video for 17-01-2024

WTI Crude Oil Technical Analysis

As you can see, the crude oil market rallied slightly during the trading session on Tuesday as full liquidity came back into the marketplace. That being said, I think this is a scenario where market participants continue to see a lot of volatility ahead and I do believe that will continue to be the case overall. After all, the crude oil market is one that is currently dealing with a lot of moving pieces at the same time, not the least of which of course is going to be the idea that the attacks in the Red Sea continue or the idea that perhaps the demand is falling, but at the same time we also more likely than not will have the OPEC members continue to try to squeeze production.

So, we’re just in a very noisy time right now when it comes to crude. In the WTI market, I see the $75 level above offering significant resistance right along with the 50 day EMA. And underneath, I see a significant support level in the form of 68$ and I think we will continue to bang around in this area.

Brent Crude Oil Technical Analysis

Brent is very much in the same situation, and I think it looks like it is going to challenge 80.50$ eventually after breaking through the 50-day EMA. Underneath we have the 72$ level as the floor in the market as it were. That being said, I’m not overly concerned about the market right now as I think we’re in the midst of an accumulation phase. Eventually, we will probably rally, but right now we just don’t have that extra momentum to make that happen.

In general, I think this is a market that will follow right along with the WTI grade, and of course you will have to pay close attention to dips as they could offer plenty of value. I have no interest in selling oil because both grades of crude oil are at the very bottom of a huge longer-term range, but this is an area that has been massively supportive going back years.

For a look at all of today’s economic events, check out our economic calendar.