Crude Oil Price Forecast – Crude Oil Markets Continue to Hesitate

Crude Oil Prices Forecast Video for 17.04.23

WTI Crude Oil (US) Technical Analysis

The West Texas Intermediate Crude Oil market has done very little during the trading session on Friday, which perhaps is not much of a surprise considering that we are trying to figure out where the economy is going. While OPEC did announce the 1.6 million barrel cut a couple of weeks ago, the reality is that we have to ask ourselves as to whether or not there is going to be enough demand. Granted, the supply situation is somewhat tight, but if the world starts going into a major recession, that is going to work against the value of oil, and thus the conundrum.

One has to say that the gap underneath will more likely than not get filled given enough time, so on a major breakdown I would be willing to sell into that gap. That being said, it’s more or less a trade than anything else. If we continue to see a lot of supply constrained, then oil could take off, but it would need to break above the highs of the last couple of days to challenge the $85 level in the WTI grade.

Brent Crude Oil Technical Analysis (UK)

Brent markets are just below the 200-Day EMA, so there is a little bit of technical resistance to be found here. That being said, I think this is a market that will ultimately look at the world through the prism of whether or not there is going to be enough demand, and of course you should keep in mind that the $90 level just above is also resistance. In other words, I think Brent has more work to do to break out and therefore we need to pay close attention to the WTI grade as it could give us a bit of a “heads up” as to whether or not it can do so.

Much like the WTI grade, it also has a gap underneath that it has to worry about, and it is possible that futures traders will try to fill that gap given enough time. Ultimately, I think the $80 level ends up being a bit of a floor in the market, unless of course we see something horrific when it comes to global growth.

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