Crude Oil Price Forecast – Crude Oil Markets Continue to Drive Lower

Crude Oil Prices Forecast Video for 27.04.23

WTI Crude Oil (US) Technical Analysis

The West Texas Intermediate Crude Oil market initially tried to rally during the trading session on Wednesday but gave back the gains as the 50-Day EMA has caused a bit of a headache. At this point, we are testing the gap from the OPEC surprise production cut, meaning that we could be on the verge of something rather big happening. Because of this, the next day or two could be crucial as to where we go next, and therefore I think you’ve got a situation where you are probably best waiting to see which direction we head before putting money to work.

Underneath, the $75 level will continue to be important, and if we break down below there, the market will probably drop down to the $72.50 level. On the other hand, if we break about the highs of the day for Wednesday, then we probably bounce back toward the top of the gap.

Brent Crude Oil (UK) Technical Analysis

Brent also fell during the trading session and now threatens to break through the bottom of the gap. If this happens, that’s almost always a very bad sign and will likely send much lower crude oil. The 50-Day EMA sits above and offers a significant amount of resistance. Ultimately, this is a market that we could go down rather quickly, as people are starting to worry about the global economy and therefore demand is something that is a major issue.

For what it is worth, several of the talking heads on CNBC have been talking about how oil was going to continue skyrocketing after the OPEC cuts, which is probably everything you need to know. In other words, it probably was never really going to take off, and it’s probably worth noting that the 200-Day EMA has offered a significant amount of resistance. Either way, this is a market that is testing something rather big, so a little bit of patience will probably go a long way in this scenario. If we do break down, $75 would be the initial target, but we could drop all the way down to $70 before it’s all said and done. This is about the economy, not supply and demand directly.

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