Crude Oil Price Forecast: Analyzing Current Market Trends
WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil Market bounced slightly to kick off the week, but liquidity has diminished due to the Labor Day holiday in America. This has skewed trading hours predominantly towards electronic overnight trading.
As a result of these factors, the market appears to be bouncing from an oversold condition and showing signs of compression as it tries to identify its next step.
This scenario is complicated by upcoming interest rate adjustments. The complicated economic climate, where inflation persists while growth slows, creates a challenging environment. Hence, it is likely we will see this market fluctuate within the $71.50 support and $75 resistance levels.
Brent Crude Oil Technical Analysis
Similar to WTI, the Brent market appears stuck in a range with a supportive floor around $75.50 and a ceiling approaching $79. This reflects the shared issues that both crude markets face due to ongoing geopolitical concerns, which contribute to market volatility.
As a result, we are expected to experience a choppy trading environment, with the market remaining range-bound under current economic conditions.
Conclusion: An Ongoing Watch on Economic Events
For a look at all of today’s economic events, check out our economic calendar.
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.