Crude Oil Price Forecast – Crude Oil Markets Continue to Hover

Crude Oil Prices Forecast Video for 08.09.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has drifted a little bit lower early during the Thursday trading session, as we continue to see a lot of noisy behavior in general. Ultimately, I think this is a scenario where traders come back into the picture on any dips, because it’s obvious that the supply situation is going to continue to be very troublesome. The market has gone straight up in the air multiple days in a row, which is an obvious shift in attitude, but it’s also worth paying attention to the fact that the market cannot go in one direction forever.

With this, a pull back toward the $85 level would capture quite a bit of attention, followed by the $83 level. Either way, I have no interest in trying to short the market, as it is so strong at the moment.

Brent Crude Oil Technical Analysis

Brent markets continue to show signs of strength, although it’s probably worth noting that they are hanging around the overall highest, with the $90 level showing quite a bit of noisy behavior, as it is a large, round, psychologically significant figure. That being said, the market has gone straight up in the air for far too long, and it does make quite a bit of sense that we would see a bit of a pull back over here as well. That being said though, both of these grades of crude oil have recently seen the so-called “golden cross”, where the 50-Day EMA breaks above the 200-Day EMA, signifying that the market is most definitely positive from a longer-term standpoint.

All things being equal, this is a market that I think will continue to be very bullish as both Russia and Saudi Arabia take supply off of the global stage. The fact that they have extended these voluntary price cuts shows just how serious oil producers are about rising prices, so it’s likely that we see some type of bigshot higher, followed by concerns down the road when the economy starts to slow down. That being said, the market will more likely than not be very volatile over the next couple of months.

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