Crude Oil Price Forecast – Crude Oil Continues to Fall (2024)

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WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market fell rather hard again during the trading session on Tuesday, as it looks like traders are pricing in Armageddon. The idea of course is that the global economy and more specifically, the US economy is slowing down and therefore there will be less demand for oil. Fair enough. But there does come a point where it is so cheap it doesn’t make any sense.

The United States still has to fill the SPR or at least they’re pretending like they do. So sooner or later there will be a big buyer in the market regardless and perhaps these lower prices will have that be a reality. At this point, it looks like $70 might be the next support level, but while I think this is a value trade just waiting to happen, the reality is I don’t want to try to be the first one to pick up the market.

Brent Crude Oil Technical Analysis

Brent markets also fall really hard and now I think Brent’s going to be looking closer to the 75 level as the next major support level. I don’t necessarily like shorting this market because quite frankly, it’s falling apart so rapidly that you probably don’t have as much risk to reward here.

Nonetheless, I do think that if we get a couple of days of stability, you will probably find value hunters coming back into the market, or there’s also the possibility of some geopolitical situation popping up in the Middle East that could cause all kinds of chaos as well. So never forget that. With that being said, I’m just waiting. I don’t like the idea of shorting oil this time of year. So all I can do is wait. And once I see that signal, you’ll be the first to know.

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

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