Crude Oil Price Forecast – Crude Oil Markets Continue to Chop

Crude Oil Prices Forecast Video for 16.06.23

WTI Crude Oil (US) Technical Analysis

The West Texas Intermediate Crude Oil market initially pulled back just a bit during the trading session on Thursday, but then turned around to show signs of life. The $70 level above has been resistant recently, but we also have the 50-Day EMA sitting near the $72.50 level and dropping. Underneath, we have the $67.50 level offering support, and then after that we have the $65 level.

Ultimately, I do think that the choppiness continues, because there are multiple reasons to believe that we are still stuck in some type of range. Furthermore, we also have the “summer range” that the market tends to fall into, as America enters the “summer driving season.” China recently has increased its import quota, and while that is bullish, there are a lot of economic concerns out there that could continue to weigh upon the pricing of crude oil overall.

All things being equal, it looks like the market is going to continue to see a lot of choppy behavior, and therefore I think you need to focus more or less on short-term charts as the market is not quite ready to make a bigger move, therefore you would need to be nimble if you are trading this market over the next several months.

Brent Crude Oil (UK) Technical Analysis

The Brent market was slightly positive during the trading session on Thursday, as it looks like we are hanging around a tight range. Ultimately, this is a market that I think continues to see a lot of choppiness, as there are 2 major forces driving the crude oil market right now.

The first thing of course is the fact that the global economy is heading into a recession. There are a lot of concerns about the demand going forward, therefore it has a huge overhang of uncertainty. On the other hand, we have a lack of supply going forward due to the fact that OPEC continues to cut supply. In other words, we have a “push/pull” dynamic playing out over the next several months. Alternatively, the $70 level underneath is a massive support level, and of course above, the $77.50 level offers a significant amount of resistance.

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