Crude Oil Price Forecast: Analyzing Market Resistance and Demand Dynamics
WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil Market initially tried to rally during the trading session on Thursday, but it looks like we are running into a bit of a buzzsaw of resistance. I’m paying close attention to the $67.50 level as a significant barrier that traders will continue to monitor while extending upwards towards $68. It certainly appears that pressures on Crude will continue as demand in China is decreasing amidst concerns over a global slowdown. Consequently, I believe it is prudent to fade any rally attempts.
Brent Crude Oil Technical Analysis
The Brent market mirrors these trends closely. The $71.50 level is presenting resistance, although $70 serves as psychological support. While it remains unclear if crude oil is nearing its bottom, the market is under extremely oversold conditions, leading to potential upside fights. If Brent can break above $72.50, it may gain momentum, but for now, it remains challenged by diminishing demand. This is increasingly relevant as China transitions its larger machinery, such as buses and semi-trucks, to natural gas, impacting crude oil negatively while bolstering natural gas.
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