Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Crude Oil Forecast - Crude Oil Markets Continue to Be Noisy

  • The crude oil market experienced a slight pullback during Wednesday's trading session, but it remains firmly within a substantial consolidation range, drawing the attention of many investors.
  • This means that we can get somewhat comfortable with the idea of rangebound trading.

WTI Crude Oil

Crude Oil Forecast Today - 18/01: Oil Markets Remain Noisy (Graph)

In the case of WTI Crude Oil, the market saw early declines on Wednesday, reflecting the ongoing turbulence in Crude Oil prices. However, the prevailing sentiment suggests that the market is primarily consolidating at the moment. This consolidation phase is expected to exert more influence on prices than any other factor, although there are going to be occasional headlines crossing the wires that could be influential.

It's probable that this dip will find buyers once again. Concerns about the oil market's overall health would only become significant if prices drop below $68, and some argue that support may extend as far as $65. It's important to note that various factors are simultaneously impacting the market, as per usual for the oil markets, which are somewhat noisy under the best circumstances.

Top Forex Brokers

    Brent

    Brent Oil Forecast Today - 18/01: Oil Markets Remain Noisy (Graph)

    The Brent market exhibits a similar pattern. It displayed early softness on Wednesday but remains within a defined consolidation range. The $72 level serves as support, while the $80.50 level acts as resistance. The market's movements are influenced by multiple factors, including incidents in the Red Sea and concerns about oversupply. Moreover, worries about a potential recession that could reduce demand are counterbalanced by OPEC's readiness to curtail production to support the market.

    In the grander scheme of things, the market might be in an accumulation phase from a long-term perspective. However, in the short term, it's advisable to approach the market cautiously. Purchasing in small increments during price dips with limited exposure is a prudent strategy. The current market lacks clear directionality and is characterized by volatility, something that I do not think goes away anytime soon.

    At the end of the day, the crude oil market remains within a consolidation range, with WTI Crude Oil and Brent both navigating between support and resistance levels. Various factors, including geopolitical events and supply concerns, are contributing to this volatility. While the long-term outlook may involve an accumulation phase, short-term trading should be approached with caution due to the market's unpredictable and choppy nature.

    Ready to trade WTI Crude Oil FX? We’ve shortlisted the best Forex Oil trading brokers in the industry for you. 

    Christopher Lewis
    About Christopher Lewis

    Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.

    Most Visited Forex Broker Reviews