Crude Oil Price Forecast – Crude Oil Gaps Higher to Kick Off the Week

Crude Oil Prices Forecast Video for 10.10.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has gapped higher to kick off the trading week, as we have seen a lot of panic in the oil market. The market had sold off quite drastically, as people are worried about deman, but anytime you see a flareup in the Middle East, it almost always will send oil much higher. Because of this, the market is going to continue to be very noisy. Ultimately, this is a market that I think will continue to see a lot of demand in a relatively tight amount of supply. As long as that’s going to be the case, I do think that you have more upward threats than downward, at least in the short term.

I would not be surprised at all to see this market go looking toward the $90 level rather soon. The gap underneath should offer plenty of support, and I do think at this point we are probably seeing the short term bottom as we bounced from roughly the 200-Day EMA anyway.

Brent Crude Oil Technical Analysis

Brent markets also have gapped higher to kick off the trading session, and now look as if they are ready to threaten the $90 level as well. If we can break above there, then it opens up a move to the $95 level. The $95 level had been significant resistance previously, so it would not surprise me at all to see it come into the picture and cause some headaches for buyers at this point. On the downside, we have the 200-Day EMA, where we bounced from, and that should continue to offer plenty of support.

Quite frankly, the market was oversold for the short term, and the conflict in the Middle East was just yet another reason for the market to rally. On the downside, if we were to break down below the $82.50 level, then Brent could drop down to the $80 level, but right now I don’t think that happens, and I do think that this is more or less going to be a “buy on the dips” scenario, just as it had been for some time.

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