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

Crude Oil Prices Forecast Video for 02.03.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has initially rallied a bit during the trading session on Wednesday but gave the back gains near the 50-Day EMA as we just don’t have any real sign of momentum. Because of this, it’s very likely that we will continue to see a lot of lackluster performance, and therefore unless you are a short-term trader it’s very difficult to imagine why you would get overly excited.

At this point, it looks like the $72.50 level and the $82.50 level will be the border of the overall consolidation, and I just don’t see how we get out of this area anytime soon. It is worth noting that people are worried about whether or not there is going to be enough demand, as central banks around the world continue to tighten monetary policy. If that’s the case, oil is probably stuck in this range. However, if we were to break out above the 200-Day EMA, it could kick off the next “FOMO trade.”

Brent Crude Oil Technical Analysis

Brent markets have also tried to rally during the trading session on Wednesday, but the 50-Day EMA has also caused resistance over here as well. Because of this, I think we are essentially going to hang around in this range, with the $77.50 level underneath offering support, and the $90 level above offering resistance. The 200-Day EMA currently sits at $89.28 level in the futures contract, and that would kick off a lot of buying if we were to break above there. I don’t know that happens anytime soon, so I think if you are range bound trader you may find this market interesting.

Technical analysis would suggest that using something along the lines of the Stochastic Oscillator might be a good way to go, as there is no real momentum in one direction or the other as traders are trying to digest all of the economic conditions around the world which of course show a tight crude oil supply, but at the same time a serious lack of demand. Eventually, we will get a huge move, probably for a good $10 once we break out of this area. However, it does not look like it’s happening anytime soon.

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