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

Crude Oil Prices Forecast Video for 02.06.23

WTI Crude Oil (US) Technical Analysis

West Texas Intermediate Crude Oil market has initially tried to rally during the trading session on Thursday, only to show signs of weakness yet again. By doing so, it looks as if the $70 level above is going to continue to be a bit of a ceiling, so it will be interesting to see how that plays out. Furthermore, we also have a massive amount of support near the $65 level, something that we need to pay close attention to.

Ultimately, I think you need to be very cautious with the position sizing, but it’s obvious to me that the world is focusing on the fact that the global economy is about to slow down, and that obviously has a very negative influence on the oil markets. Oil of course is the lifeblood of global economic growth, so if there’s no demand, pricing power will be destroyed.

Brent Crude Oil (UK) Technical Analysis

The Brent market also looks very similar, with an attempt to rally early in the day, only to be punched in the face and start falling again. The $70 level underneath will continue to be important, if we can break down below the $70 level, that could open up a massive amount of selling pressure. Ultimately, I don’t necessarily think that’s the likeliest of things that happen, as I believe the $70 level will be very important.

On the other hand, if we turn around and break above the top of the candlestick for the trading session on Wednesday, that could open up a move toward the $77.50 level. However, the 50-Day EMA sits just above there and it will more likely than not cause a bit of technical resistance. I do expect some type of short-term bounce, but I don’t necessarily think that it is going to be a major trend change anytime soon as we seem to be setting up for some type of summer range in this market as we typically do each year. Furthermore, as long as the global economy is slow, pricing on crude oil is going to be anemic at best.

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