Superior broker technology provider since 2010
+1 (315) 675 1086 | Sales@YourOwnBrokerage.com

Crude Oil Forecast: Continues to See Volatility


The oil market, at present, is characterized by its noise and volatility. 

  • The West Texas Intermediate (WTI) Crude Oil market made notable strides early on Wednesday, breaking above the $70 mark.
  • However, the sustainability of this upward move remains uncertain. The 50-Day Exponential Moving Average (EMA), currently near $72.75 and descending, may impose a ceiling on market growth.
  • The $75 level is also anticipated to serve as a substantial barrier. Above there, the market continues much higher.

brokers-we-recommend Forex Brokers We Recommend in Your Region

See full brokers list see-full-broker

 

Market dynamics are largely influenced by debates surrounding the trajectory of global demand. Some predict an increase, while others foresee a downturn due to potential global crises. Notably, China’s increase in its crude oil import quota has fueled Wednesday’s bullish trend for crude oil. The market’s response to this move will dictate whether it can sustain its momentum. At present, trading appears to be confined between $73 and $67.50. I do not think we break out, but it is something that remains to be seen.

Similarly, Brent, also known as UK Oil, demonstrated a rally during Wednesday’s trading session. Its performance mirrors that of the WTI market, driven by the same factors. Brent, however, is likely to be more sensitive to Chinese market changes. The 50-Day EMA for Brent hovers around $77.25 and is declining, outlining the upper limit of the current trading range, with $71.50 offering support beneath. The $70 level is expected to serve as a crucial benchmark.

The oil market, at present, is characterized by its noise and volatility. However, a significant breakout is anticipated given enough time. This is unlikely to occur imminently, as the market is currently operating within what is typically considered a summer range. Demand remains tepid, matched by weak supply. This scenario has led to a pattern of short-term fluctuations, which could culminate in a larger market movement later this summer.

At the end of the day, the WTI and Brent oil markets are currently driven by speculation surrounding global demand, with particular emphasis on China’s role. Both markets are witnessing short-term volatility within defined ranges, with key levels acting as potential barriers. Traders should brace for continued volatility, keeping a keen eye on global demand indicators and policy changes. The market’s current fluctuations may be a precursor to more significant moves in the later summer months, necessitating informed and strategic decision-making from traders.

Brent Crude OilBrent Crude OilReady to trade our WTI Crude Oil Forex? We’ve made a list of the best Forex Oil trading platforms worth trading with.

Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.


RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.


The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.


The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.



© 2009 - 2024 YourOwnBrokerage.com. All Rights Reserved.