Crude Oil Price Forecast – Crude Oil Markets Continue to Chop Back and Forth

Crude Oil Prices Forecast Video for 17.05.23

WTI Crude Oil (US) Technical Analysis

The West Texas Intermediate Crude Oil market has gone back and forth during the trading session on Tuesday as we continue to hang around above the $70 level. Quite frankly, the market doesn’t look like it has anywhere to be so I don’t necessarily think that we are going to see a major move in the short term. Whether or not we can break out or break down remains to be seen, but right now it certainly looks as if we are going to have to get some type of resolution to the current lack of momentum.

The market breaking down below the $70 level opens up the possibility of a move down to the $65 level. On the other hand, if we turn around and break above the top of the recent swing high, near the $73.50 region, it could have the market testing the 50-Day EMA and then possibly making a move toward the $80 level. The biggest concern of course is going to be the fact that the global economy seems to be slowing down, which of course means that there will be less demand for crude oil if that does in fact end up being the case.

Brent Crude Oil (UK) Technical Analysis

Brent markets have gone back and forth during the trading session on Tuesday as market participants are trying to figure out what’s going to happen with global growth there as well. As long as that’s going to be the case, it’s very likely that we will continue to see more chop than anything else. In this environment, I think that what we have is a market that’s trying to figure out whether or not there will be enough demand, or if things are actually going to get worse. There are a lot of things out there pointing toward trouble ahead, so the upside is probably limited.

That being said, it does look as if the $70 level is trying to offer a significant amount of support, so I’m not looking for a melt down either. We may be trying to carve out some type of “summer range”, which is quite common for the crude oil markets.

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