Crude Oil Price Forecast – Crude Oil Markets Continue to Do Very Little

Crude Oil Prices Forecast Video for 23.02.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has gone back and forth during the trading session on Wednesday, as we are essentially in the middle of a larger consolidation area. The $82 level above is significant resistance, while the $72 level underneath offers significant support. As the market is hanging around the $76 level, we are essentially right in the middle of the larger range. With that being the case, it’s difficult to get overly excited about this market at the moment, therefore I think you have to look at it through the prism of the short-term back in for the range bound situation.

That being said, if we were to test the outer ranges of the rectangle, then I am more than willing to try to use that for support or resistance. Furthermore, I would also add that the 200-Day EMA above is racing towards the top of the consolidation area, so I think that is going to add even more resistance in that area.

Brent Crude Oil Technical Analysis

The Brent market also dipped a bit during the trading session, and much like its cousin in the United States, it is essentially right in the middle of a consolidation area. In this market, the high part of the consolidation area is the $90 level, which also features the 200-Day EMA. On the other side of the equation, it looks like the $77.50 level is going to offer support, and as we are hanging around $82.50, we are obviously very much in the same situation we are in the other form of crude oil.

With this, pay close attention to the idea of whether or not economic conditions are going to improve, because oil of course is the “lifeblood” of global commerce and economic momentum. If we are going to head into a larger recession, then the demand for oil will continue to soften, completely ignoring the fact that recently OPEC had cut production by 2 million barrels a day. Because of this, it’s likely to continue to be a situation where we have lackluster back-and-forth range bound trading, but if you are range bound trader, this could very well be a good market for you.

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