Crude Oil Price Forecast – Crude Oil Markets Continue to Look Soft

Crude Oil Prices Forecast Video for 02.05.23

WTI Crude Oil Technical Analysis

West Texas Intermediate Crude Oil pulled back just a bit during the trading session on Monday, as we continue to see a lot of softness in the overall energy markets, due to the fact that a global recession is all that is being priced in now. OPEC recently cut production by 1.6 million barrels per day, which caused a major gap in the market. However, people have started to price in the idea that perhaps they are worried about demand, and therefore started selling crude oil.

Ultimately, the 50-Day EMA has offered resistance on the way back up, so now it’s very possible that we could go lower from here. If we do break down below the lows of last week, it could open up a move down to the $70 level. On the other hand, if we break above the 50 day EMA, we could give looking toward $79 where I would expect to see some resistance.

Brent Crude Oil Technical Analysis

Brent markets have also fallen during the trading session on Monday, as we continue to see a lot of choppy noisy behavior. The 50-Day EMA above should offer a bit of resistance, but if we can break above there then it’s possible that we could give looking to the 200-Day EMA, which of course is a huge technical barrier.

On the downside, if we were to break down below the lows of the week then it opens up the possibility of Brent going down to the $75 level. The $75 level is a large, round, psychologically significant figure that a lot of people will be paying close attention to, and it could offer a little bit of support. Breaking down below that then opens up the floodgates.

As far as buying is concerned, it’s going to take a lot for me to start doing so in crude oil due to the fact that they have sold this market on so drastically, and it’s obvious that there is a lot of concern out there when it comes to global growth. Furthermore, Chinese numbers are starting to slow back down, as PMI dropped below 50 overnight. This of course is a very negative sign.

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