Crude Oil Price Forecast – Crude Oil Market Stall

Crude Oil Prices Forecast Video for 19.06.23

WTI Crude Oil (US) Technical Analysis

The West Texas Intermediate Crude Oil market has gone back and forth during the trading session on Friday, as we are getting close to the top of the short-term range. Ultimately, the 50-Day EMA above there, near the $72.50 level, is going to offer a significant amount of resistance. Beyond that level, then you could be looking at a move to the $75 level.

Underneath, the $67.50 level is supported, and the bottom of the overall range. We have had a couple of days of somewhat positive action, but it looks like we are running out of momentum. It makes quite a bit of sense that we would see oil struggle, because there are massive concerns about global demand. At the same time, we have OPEC and its production cuts, so it will continue to keep things noisy.

Brent Crude Oil (UK) Technical Analysis

The Brent market also went back and forth during the trading session on Friday, as we are approaching the 50-Day EMA. Brent of course suffers at the same type of volatility as WTI does, with the lack of clarity on global demand, and of course global supply being tightened.

The 50-Day EMA sits right around the $77 level and is dropping, offering a significant amount of resistance. After that, the $80 level is a major resistance barrier as well. Underneath, the $71.50 level is a major support level, as we continue to see a lot of noisy behavior. All things being equal, this is a market that is going to remain choppy as there are so many different moves in both directions. I expect volatility, and I think that will continue to be the case for crude oil.

In general, I think that crude oil markets are settling into some type of “summer range” which is quite common, as we have started to consolidate in a somewhat well-defined range since the middle of May. I don’t see anything changing this anytime soon, despite the fact that you could make an argument that pricing is not indicative of actual supply, but ultimately the market does not look like it’s willing to put a lot of money in either direction. A range bound system will continue to be the best way forward.

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