Crude Oil Forecast: Markets Resilient Despite Early Struggle

9/22/2023 11:15:40 PM

(MENAFN- Daily Forex) crude oil markets experienced an initial dip during Thursday's trading session, only to rebound, signaling a resilience that underscores the ongoing upward pressure. This will more likely than not be a constant in this commodity going forward, even if the US dollar continues to strengthen right along with it.

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In the West Texas Intermediate Crude Oil market, prices initially dropped to $88.35 before staging a recovery. This turnaround suggests a determination to maintain the prevailing uptrend. Even in the event of a pullback, shorting this market holds little appeal due to the recent display of momentum driven by supply concerns. The coordinated efforts of Russia and Saudi Arabia to reduce supply have added to the market's unease.

The market is likely eyeing the $95 level, and although there may be minor fluctuations along the way, Thursday's rebound indicates a continued appetite for this market, with investors keen to push it higher. This doesn't mean that we go straight up in the air overall.

Similarly, Brent crude oil faced early declines before displaying signs of vitality. Around the $92 mark, there is expected to be support, and even if it breaks below, the $90 level is poised to offer a strong floor, further solidifying the bullish outlook. Shorting this market remains an unattractive proposition, given the persistent supply concerns.The Markets Have Demonstrated Their Resilience

The Brent market could very well set its sights on the significant $100 level, while the $95 mark has served as notable resistance in recent days. With the underlying sentiment favoring bullishness, any dips in the market are viewed as opportunities to buy. The abundance of buying pressure is expected to persist in the foreseeable future. After all, supply is a major issue now, and it will continue to be one of the biggest factors that people pay attention to.

In conclusion, the crude oil markets have demonstrated their resilience, bouncing back from early setbacks. Despite minor fluctuations, the prevailing upward trend remains intact. Factors such as supply concerns and the determination of major oil-producing nations to curtail output continue to support the bullish sentiment. While psychological levels like $100 loom ahead, traders are advised to consider dips as opportunities to join the ongoing buying frenzy. Shorting this market appears to be a strategy at odds with the current dynamics, emphasizing the enduring bullish momentum.

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