Crude Oil Price Forecast – Crude Oil Markets Gap Higher After OPEC+ Cut

Crude Oil Prices Forecast Video for 04.04.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has gapped higher to kick off the Monday session as OPEC+ announced a 1 million barrel per day cut starting in May. This was a major change in attitude and has shocked at the market. The 200-Day EMA sits just above, and it has offered a significant amount of resistance. The gap underneath could be filled rather soon, as futures markets typically do. That being said, it doesn’t necessarily mean that we need to do so right away.

A pullback to fill the gap could test the 50-Day EMA, which of course comes into the picture, right around the $75.19 level. Anything below there would reaffirm a negative trend. Quite frankly, I don’t know that OPEC had much of a choice, due to the fact that there was a serious lack of potential demand in a slowing global economy.

Brent Crude Oil Technical Analysis

Brent markets also gapped higher to kick off the week, breaking above the previous uptrend line, and it now looks as if we are going to test the 200-Day EMA. Nonetheless, we have given back some of the gains, so I think this gives us a little bit of a “heads up” that we may be getting ready to pull back and fill the gap. The 50-Day EMA sits at the $80.85 level, but the support itself sits just below the $80 level. Ultimately, I think that makes the most sense but whether or not we hold that gap remains to be seen.

If we do break above the 200-Day EMA, then it’s possible that we could go looking to the $90 level. If we can break above there, then it’s likely that we could go all the way to the $100 level. All things being equal, this is probably going to be a situation where things will be noisy, and I would anticipate a little bit of a pullback, but I think that we may be trying to form some type of longer-term bottom in the market that had sold off so drastically. In general, this is a situation that demands that you find value.

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