Crude Oil Price Forecast – Crude Oil Markets Continue to Show Signs of Hesitation

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has plunged to kick off the week on Monday to slice through the 200 Day EMA. By doing so, the market looks as if it is ready to continue being very noisy, and perhaps ready to plunge down to the $90 level. Obviously, there are a lot of moving pieces at the moment, not the least of which is the fact that the global economy may be slowing down. If that’s going to be the case, then demand for crude oil will drop. On the other hand, there are also concerns about supply, so that does keep a little bit of a firm footing in this market occasionally. Watch the $90 level, that will be crucial.

Crude Oil Prices Forecast Video for 02.08.22

Brent Crude Oil Technical Analysis

Brent markets also have fallen rather hard during the Monday session to slice below the $100 level by the time New York got on board. At this point, it looks like the market is going to test the 200 Day EMA underneath, which will attract a lot of attention in and of itself. Because of this, I think this is a market that will be very noisy, and we may have to pay close attention to the $95 level. If we break down below there, or if the WTI grade breaks down below the $90 level, we could see a plunge in crude oil.

All of this being said, it does look like we are still very much in consolidation with both grades of oil, so short-term traders continue to push it back and forth, and that is something to be aware of.

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