Crude Oil Price Forecast – Crude Oil Markets Continue to Show Weakness

Crude Oil Prices Forecast Video for 03.05.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has shown itself to be negative yet again, as we continue to see a lot of concern when it comes to the overall global economy, which means we will have very little in the way of demand for energy and by extension crude oil. Ultimately, I do think that this is a market that continues to go lower, especially considering that we have broken below the gap that formed when OPEC cut production by 1.6 million barrels per day.

At this point, it’s very likely that we are going to see further negativity, perhaps a move down to the $70 level. At this point, I think that makes a lot of sense as we have broken through the gap, and of course it is the next major psychological barrier. In the meantime, short-term rallies that show signs of exhaustion will almost certainly be looked at as potential selling opportunities in a market that remains volatile.

Brent Crude Oil Technical Analysis

Brent markets also have fallen a bit during the trading session on Tuesday, as it looks like we are heading toward the $75 level eventually. The 50-Day EMA just above offers resistance as well, and that is something that needs to be paid close attention to. Short-term rallies should be sold more likely than not, especially at the first signs of exhaustion. Keep in mind that even though there was a production cut by OPEC, the reality is that the overall economy is shrinking, and that’s something that we cannot step away from. The demand for crude oil will continue to falter, especially as things become more and more difficult for certain major economies around the world.

At this point, it’s not until we break above the 200-Day EMA in either grade of crude oil that I’d be willing to get bullish, something that would take quite a bit of a turnaround in both of these markets. Keep in mind that one will often leave the other, so you can use one of these markets for a signal for the other one if it is lagging. Furthermore, do not forget the effect that a strengthening or weakening US dollar can have on the market.

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