Crude Oil Price Forecast – Crude Oil Markets Continue Hesitate

Crude Oil Prices Forecast Video for 12.04.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has gone back and forth during the trading session on Tuesday, as it looks like we are going to continue to hesitate just below the 200-Day EMA. Remember, the market gapped to kick off last week, as OPEC decided to cut production by 1.6 million barrels a day. Since then, we have done absolutely nothing. This is not a bullish sign, due to the fact that the market has no follow-through. Furthermore, you have to ask the question as to why OPEC decided to start cutting in the first place.

OPEC is cutting prices due to the fact that demand should be dropping. This is a clear-cut sign that the global economy is going to be struggling, and in that scenario, it is very unlikely that we would continue to see oil take off to the upside as the supply/demand equation would not be favored. That’s not to say that it can’t, but it is worth noting that the 200-Day EMA has been like a brick wall, right at the top of the previous consolidation area. Filling the gap is still what I expect to see happening, but we need to break below the lows of the last couple of days.

Brent Crude Oil Technical Analysis

Brent markets obviously fell in the same trap, as we gapped higher, and then simply did nothing. We are sitting just below the 200-Day EMA over here as well, although did not quite reach the top of the overall consolidation area. With that being the case, I think the market is probably going to fill the gap sooner rather than later, and quite frankly I am a bit surprised that we haven’t done it already.

That being said, the market is likely to continue to see a lot of noisy behavior, but I think that most futures traders know that gaps tend to get filled, and therefore you need to pay close attention to the fact that it will happen sooner or later. It’s also worth noting that Brent would then be testing the $80 level, which of course is a large, round, psychologically significant figure. The global economy does not look very healthy at this point, so oil demand is going to continue to be a major problem.

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