Crude Oil Price Forecast – Crude Continues to Look Weak

Crude Oil Prices Forecast Video for 01.05.23

WTI Crude Oil (UK) Technical Analysis

The crude oil markets have been facing significant pressure, with both the West Texas Intermediate (WTI) and Brent markets showing signs of negativity. During Friday’s trading session, the WTI market appeared heavy, reflecting the idea of a major slowdown. The market is currently priced in for this scenario, and the gap formed from OPEC cutting 1.6 million barrels per day from production has now been filled and broken, which is a generally negative sign. As a result, there is a high likelihood that the WTI market could drop to the $70 level, although this may not happen immediately.

Rallies in the WTI market should expect significant resistance at the 50-Day EMA, which was broken through during the previous session. As a result, there is no interest in purchasing oil anytime soon, and it is likely that the market has entered a short-term market where rallies should be faded going forward. This is because the global economy is showing signs of slowing down, making it risky to invest in oil.

Brent Crude Oil (UK) Technical Analysis

The Brent market has also been experiencing similar pressure, although it attempted to rally more than the WTI market did earlier. However, sellers have returned, and it appears that Brent will reach toward the $75 level, which has significant psychology attached to it and has offered support in the past. Breaking down below this level opens up the possibility of a move down to the $72.50 level and eventually the $70 level if things get bad enough.

The 50-Day EMA above Brent is starting to break down below the $82 level, providing significant resistance. As a result, rallies between the current level and $82 that show even the slightest potential for banking gains will probably end up being short-term selling opportunities. It is not advisable to risk too much on any type of position, and it is not recommended to purchase oil in a slowing global economy. If one is patient enough to wait for oil to become “a bit too expensive,” it is likely that there will be plenty of opportunities in the future.

At the end of the day, the WTI and Brent markets have been under significant pressure due to the global economy’s slowing down. Any rallies in these markets should expect significant resistance, and it is not advisable to purchase oil anytime soon. It is recommended to wait for oil to become “a bit too expensive” to get the best opportunities in the future. The 50-Day EMA is proving to be a crucial resistance point, and investors must exercise caution while investing in the oil markets.

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