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

Crude Oil Prices Forecast Video for 28.04.23

WTI Crude Oil (US) Technical Analysis

The West Texas Intermediate Crude Oil market has looked a bit heavy during the trading session on Thursday, as we continue to see a bit of negativity. That being said, the market is pricing in the idea of a major slowdown, and the gap that formed from OPEC cutting 1.6 million barrels per day from production is now filled and broken. That’s a generally negative sign, and I do think that we go much lower. At this point, the WTI market could go all the way down to the $70 level, although I don’t expect to see that happen immediately.

Rallies at this point in time should see a significant amount of resistance there at the 50-Day EMA, which of course we broke through during the previous session. I am not a buyer of oil anytime soon, and I think it has entered a “fade the rally” short-term type of market going forward as the global economy is clearly going to slow down.

Brent Crude Oil (UK) Technical Analysis

Brent markets of course did the same thing, although they did try to rally a bit more than the WTI market did early. Nonetheless, the sellers have come back and it looks as if Brent is going to be reaching toward the $75 level. That has a lot of psychology attached to it, and it has offered support in the past. Breaking down below there opens up the possibility of a move down to the $72.50 level and then eventually the $70 level if things get bad enough.

The 50-Day EMA above is starting to break down below the $82 level and offers a significant amount of resistance, so I think that rallies between here and there that show the slightest proclivity to get back gains are probably going to end up being short-term selling opportunities. I would not “bet the farm” on any type of position, but I certainly have no interest in buying oil into what looks to be a slowing global economy and it is likely that we will see plenty of opportunities if you’re patient enough to wait for oil to get “a bit too expensive.”

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