Crude Oil Price Forecast – Crude Oil Markets Continue to Test a Major Moving Averages

Crude Oil Prices Forecast Video for 25.08.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market initially tried to rally after gapping lower on Thursday, but then turned around to fall again. By doing so, it suggests that the market isn’t quite ready to go higher. This being the case, I think the market will eventually try to turn things back around but whether or not it can remains to be seen. If we were to break down below the 50-Day EMA, then I think it’s possible that the market could drop down to the $75 level. The $75 level of course is a large, round, psychologically significant figure.

Turning around and breaking above the $80 level it’s possible that the market could go looking to the $85 level as well. The $85 level was a major barrier that we could not break above, and that is something that we should be paying close attention to. If we were to break above there, then it’s likely that the market would go racing much higher.

Brent Crude Oil Technical Analysis

Brent also has tried to rally a bit, but turned around to show signs of hesitation. It is also sitting right around the 50-Day EMA and the 200-Day EMA indicators, and I think this comes into play for potential support. All things being equal, the $80 level underneath should offer a certain amount of support, and I do think that there would probably be a lot of option barriers in that region. If we were to break down below there, then Brent could unwind.

Right now, a lot of it is going to come down to what people think the longer-term demand picture is going to be. After all, we already know that the supply is going to be tight, because quite frankly, OPEC looks as if it has no interest in releasing that. Furthermore, the Americans have depleted most of the Strategic Petroleum Reserve, and that of course has an influence on the ability to keep prices somewhat muted. However, if it looks like the global economy is going to fall apart, that of course is going to be bad for price.

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