Crude Oil Price Forecast – Crude Oil Markets Consolidate

Crude Oil Prices Forecast Video for 12.07.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has shown itself to be somewhat exhausted, as we have been consolidating over the last couple of sessions. We are getting close to the top of the overall range of trading that we have been in for a while, with the $75 level above offering a major barrier. Ultimately, if we can break above that level it would obviously be a very bullish sign, opening up the possibility of a move to the 200-Day EMA.

However, it’s worth noting that the 50-Day EMA underneath offers support, but if it were to be broken down below, then it’s likely that we have the market drop rather significantly, perhaps toward the $70 level.

Brent Crude Oil Technical Analysis

Brent markets of course look the same, as we have been consolidating toward the top of the overall range, and it’s probably worth noting that the market is going to have to weigh whether or not demand concerns or supply tightening is going to be the big mover of this market. While I think it’s a little too early to make that decision, if we were to break above the $80 level at that point I would be convinced that the market is more worried about the lack of supply.

It’s worth noting that typically at this time of the year we do have a bit of a range, but it seems like OPEC is doing everything it can to keep supply tight enough to have the price go higher. Ultimately, this is a market that I think is trying to find its way higher, but whether or not we can do it now remains to be seen.

If we were to break down below the 50-Day EMA, then I believe we would be looking at the $75 level as a potential target. Underneath there, then we have the $70 level offering massive support and is the bottom of the overall range. Either way, I think you will continue to see a lot of choppy behavior, and of course a lot of indecision. Because of this, keep your position size reasonable, and recognize that volatility is probably going to continue to be a major problem.

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