Crude Oil Price Forecast – Crude Oil Markets Bounce

Crude Oil Prices Forecast Video for 18.08.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has rallied a bit during the trading session on Thursday, as it looks like we are trying to recapture the $80 level. That being said, it’s worth noting that the market is likely to continue to look at the 200-Day EMA underneath as a potential support barrier, so that’s something to keep in the back of your mind. If we do rally from here, we could go all the way up to the $85 level and still be consolidating. If we can break above the $85 level, then it opens up the door to much higher pricing.

Keep in mind that the government of Saudi Arabia has recently voluntarily cut production by 1 million barrels per day, and even extended that. At this point, it’s not as much about demand as it is supply. As long as OPEC members are willing to tighten supply, it will eventually have an effect.

Brent Crude Oil Technical Analysis

Brent markets also have rallied during the day, as it looks like we are trying to recover. In general, I think this is a market that is paying close attention to the 200-Day EMA as well, and the fact that the 50-Day EMA is coming into the picture suggests that we could get a little bit of a “golden cross”, as the market will look at that as a longer-term target possibly. The $90 level above would be a target if we can break out from here, just as the $80 level underneath would be a target if we break down below the moving averages.

All things being equal, it does look like we are trying to recover, and the fact the US dollar is falling during the day probably has helped as well. In general, I think you’ve got a situation where the market remains noisy, but generally positive. With that being said, you need to be cautious with position sizing this time a year, because we do have a bit of thin volume as well, as a lot of major traders are away for vacation. Because of this, the movement can be quite sudden.

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