Financial Energy Review
The crude oil market has shown signs of resilience over recent weeks, with analysts suggesting a potential move to the upside in 2025. Both West Texas Intermediate (WTI) and Brent crude are navigating current market conditions with caution as liquidity remains thin during the holiday season.
On Friday, WTI crude oil prices rallied slightly, maintaining a pattern of bouncing between key levels. Market expert Michael Turner observed, “We’re in a period of low liquidity due to the holidays, so I’m not expecting dramatic movements right now. However, the market is setting up for a strong rally, possibly above the $72.50 level, in the near future.”
Short-term support for WTI is anticipated around $67 to $68. Analysts believe these levels provide a solid foundation for a bullish breakout. “Once we clear $72.50, we could see prices climb significantly higher. Pullbacks are natural, but the overall trend remains optimistic,” Turner added.
The Brent crude market, while showing initial signs of rallying, has faced some hesitation. Experts attribute this to its global dynamics and influence, which differ from WTI’s U.S.-centric factors. “Brent crude is still searching for a definitive bottom, but there’s strong support below $70. This could propel prices toward $76 and eventually the 200-day EMA,” said energy strategist Laura Hughes.
Market participants are also paying close attention to the broader context of crude oil prices. Both grades recently bounced off major support levels established years ago, signaling potential long-term strength. Hughes emphasized, “These support levels are crucial. They reflect a base for the next phase of growth, making short positions less appealing at this point.”
Despite the promising outlook, investors are urged to remain cautious. Trading derivatives, including crude oil, carries significant risks. “It’s vital for traders to fully understand the risks and seek professional advice if necessary,” industry guidelines recommend.
As 2024 comes to a close, the crude oil market remains poised for a potential breakout, laying the groundwork for a dynamic 2025.
