Crude Oil Price Forecast – Crude Oil Markets Continue to Find Buyers

Christopher Lewis
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WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has initially fallen on Thursday, but we have found enough support underneath to turn things around and show signs of life. At this point, the market is likely to continue to go to the $125 level, perhaps even as high as the $130 level. The $130 level is an area that previously has offered quite a bit of resistance and we broke down from that level after initially spiking higher due to the Russian invasion.

At this point, it’s likely that any dip will continue to find buyers, as value hunters are flooding into this market. The supply of crude oil cannot keep up with demand now that we are opening borders around the world, including China.

Crude Oil Prices Forecast Video 10.06.22

Brent Crude Oil Technical Analysis

Brent markets also pulled back initially during the day but have found plenty of buyers underneath you reach the $128 level, where we had peaked after the Russian invasion of Ukraine. Ultimately, the $120 level now looks as if it is going to cause a significant amount of support, as it had been resistant previously and of course is a large, round, psychologically significant figure. This is a market that I think continues to see a lot of noisy behavior, but it all comes down to the value of the market being lifted by demand and of course “FOMO”, so therefore more likely than not we will not only reach to the top of the range and think of this more as a “buy-and-hold” type of situation. We are a little stretched at this moment, so does make a certain amount of sense that we would see value hunting.

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

This article was originally posted on FX Empire

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