Crude Oil Price Forecast: Analyzing Market Resistance and Demand Dynamics

Thursday, 12 September 2024, 08:05

Crude Oil price forecast indicates growing resistance levels influencing WTI and Brent. The drop in demand from China adds pressure on crude oil markets amid global slowdown concerns.
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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.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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