Crude Oil Price Forecast – Crude Markets Continue to Push to the Upside

Crude Oil Prices Forecast Video for 21.07.23

WTI Crude Oil Technical Analysis

The crude oil markets experienced a notable rally in the early hours of Thursday’s trading session, as the impact of OPEC production cuts reverberated throughout the industry. Both the West Texas Intermediate and Brent crude oil grades demonstrated upward pressure, supported by key technical indicators.

The ongoing rally in the WTI Crude Oil market suggests a continued effort to reach the widely monitored 200-Day EMA. A breakthrough above this level could potentially pave the way for a move towards the $82.50 mark. It is worth noting that the current trading range is situated between the 50-Day EMA and the 200-Day EMA, which typically leads to increased market noise and volatility. Recent days have exemplified this pattern; however, it appears that buyers are gradually gaining strength.

Brent Crude Oil Technical Analysis

Similar to WTI, the Brent crude market has also witnessed a rally, surpassing the $80 level once again. Brent finds itself oscillating between the 50-Day EMA and the 200-Day EMA, showcasing consolidation within this range. Both markets display potential signs of forming bullish flags, which are likely to attract technical traders seeking trading opportunities.

Maintaining a position above the 50-Day EMA in the Brent market is crucial for the presence of willing buyers. A breakthrough above the 200-Day EMA could potentially propel Brent towards the $87 level. Surpassing this barrier would open up the possibility of a larger upside move, with a potential target of $90 and beyond. Conversely, breaching the 50-Day EMA may lead to downward pressure, potentially aiming for the $75 level, followed by a potential decline towards $72.

The recent rally in crude oil markets can be attributed to the impact of OPEC production cuts. Both WTI and Brent have displayed signs of support and consolidation within the trading range defined by the 50-Day EMA and the 200-Day EMA. Technical traders are likely to find appeal in the formation of potential bullish flags, indicating possible upward price movements.

For the presence of buyers, it is crucial to maintain levels above the 50-Day EMA in the Brent market. A breakthrough above the 200-Day EMA would indicate further upside potential, while breaching the 50-Day EMA could lead to downward pressure. As these dynamics unfold, traders in the crude oil sector will need to carefully observe market conditions and make strategic decisions to seize opportunities.

At the end of the day, the rally in crude oil markets, supported by OPEC production cuts and technical indicators, presents both challenges and opportunities in the oil markets, which have been very noisy for some time, although it looks like the buyers are starting to make a move.

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