Crude Oil Price Forecast – Crude Oil Markets Continue to Digest Recent Gains

Crude Oil Prices Forecast Video for 25.10.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has gapped higher to kick off the trading session on Tuesday, but then turned around to fall toward the 50-Day EMA. All things being equal, the market continues to see a lot of choppy volatility, and I think we are trying to sort out some type of longer-term direction. At this point, there are a lot of things going on that can continue to cause headaches for crude oil traders, not the least of which will be the Israel/Hamas war. Furthermore, we have to ask questions about global demand, and even more concerning, global supply.

As long as OPEC members are willing to cut back production, that causes a certain amount of issues, but at this point in time the question is whether or not there will even be enough demand? It appears that with inflation and the US economy being much more resilient than anticipated, oil is going to continue to levitate.

Brent Crude Oil Technical Analysis

Brent markets initially gapped higher but then fell down to the lows of the previous session before turning around and showing signs of life yet again. All things being equal, this is a market that continues to see a lot of noisy behavior, but I think it’s going to move right along with the WTI grade, as we have plenty of concerns when it comes to not only disruptions in supply but also a lot of concerns about whether or not geopolitical issues continue to take control. Above, I see the $95 level as the potential target. If we can break above that, then we could really go higher, perhaps reaching toward the $100 level.

The 50-Day EMA underneath continues to offer support, and I think that is your short-term floor in the market. If we break down below there, it is possible that the market could go looking to the $85 level, or even the 200-Day EMA. All things being equal, I believe that this continues to attract buyers on dips, and that’s exactly how I will approach it at the moment.

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