Crude Oil Price Forecast – Crude Continues to Show Strength

Crude Oil Prices Forecast Video for 15.09.23

WTI Crude Oil Technical Analysis

In the case of the West Texas Intermediate Crude Oil market, Thursday saw a modest rally, bringing it closer to the psychologically significant $90 threshold. While a minor pullback may be on the horizon, there’s a growing consensus that this level will ultimately be breached. The source of this optimism lies in the looming specter of inflation.

The market has been characterized by a prevailing “buy on the dips” behavior, particularly after breaking out of a bullish flag pattern. Key support levels, such as $85 and the 50-Day Exponential Moving Average, underscore the idea that selling in this market carries considerable risk. The commitment of major oil-producing nations like Saudi Arabia and Russia to production cuts, along with American efforts to replenish the Strategic Petroleum Reserve, further solidifies the market’s bullish sentiment.

Brent Crude Oil Technical Analysis

Meanwhile, the Brent crude market also experienced an upswing, inching closer to the $92.50 level. Should this level be surmounted, the next target is set at $95. Similar to WTI, Brent recently broke free from a small bullish flag pattern, diminishing the appeal of considering pullbacks as selling opportunities. The $90 level below serves as a robust support zone, fortified by its psychological significance and its place within the flag pattern.

The dynamics of supply continue to significantly influence market sentiment, with numerous major exporters maintaining production cuts. Russia’s reluctance to cooperate further adds to the uncertainty surrounding supply, and this issue is expected to persist throughout the year. It’s advisable to keep a close watch on the US dollar, as abrupt spikes in its value could potentially trigger market reversals.

In summary, the crude oil market is riding a wave of bullish sentiment driven by inflation concerns and supply dynamics. While the immediate challenges lie at $90 for WTI and $92.50 for Brent, the prevailing “buy on the dips” mentality suggests that these levels are likely to be breached in the near future. Key support levels, such as $85 and the 50-Day EMA, reinforce the overall bullish outlook. Nevertheless, the market remains sensitive to supply dynamics and the potential impact of currency fluctuations, making it a space worthy of close monitoring in the months ahead.

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