Crude Oil Price Forecast – Crude Oil Continues to Do Very Little

Crude Oil Prices Forecast Video for 18.05.23

WTI Crude Oil (US) Technical Analysis

During Wednesday’s trading session, the WTI Crude Oil market hovered above the $70 level, displaying a lack of clear direction. This indecisiveness suggests that a significant move in the short term is unlikely. Whether the market will experience a breakout or a breakdown remains uncertain, and resolving the prevailing lack of momentum is crucial for determining the next major move.

A breakdown below the $70 level in the WTI market opens the possibility of a decline towards the $65 level. Conversely, a break above the recent swing high around the $73.50 region could lead to a test of the 50-Day Exponential Moving Average (EMA) and potentially propel the price towards the $80 level. However, these potential movements are contingent upon various factors, with the global economic slowdown being a primary concern. If the slowdown materializes, it would inevitably result in decreased demand for crude oil.

Brent Crude Oil (UK) Technical Analysis

In the Brent market, a similar pattern of back-and-forth movement was observed during Wednesday’s trading session. Market participants are grappling with uncertainties surrounding global economic growth. As long as this uncertainty persists, choppiness is likely to prevail. The market is currently in the process of assessing whether there will be sufficient demand or if conditions will deteriorate further. Several indicators suggest potential challenges ahead, which limit the upside potential.

Despite the prevailing uncertainties, it is worth noting that the $70 level in the WTI market appears to be providing significant support, indicating a limited downside. This suggests that a sharp decline is not anticipated at this time. Furthermore, it is possible that the market is attempting to establish a “summer range,” a common occurrence in crude oil markets. Given the current abundance of uncertainty, heading in that direction seems plausible.

At the end of the day, the WTI Crude Oil market and the Brent market are currently experiencing indecisiveness and back-and-forth movements. The lack of clear direction is primarily attributed to uncertainties surrounding global economic growth and its impact on crude oil demand. Potential scenarios in the WTI market include a breakdown towards the $65 level or a breakout towards the 50-Day EMA and potentially the $80 level. The Brent market is expected to undergo choppy trading as market participants evaluate demand and potential challenges in the global economy.

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