Crude Oil Price Forecast – Crude Oil Markets Give Up Early Gains

Crude Oil Prices Forecast Video for 06.01.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has initially tried to rally during the trading session on Thursday but gave back gain as the ADP numbers came out hotter than anticipated. That doesn’t necessarily strike most people as a correlated move, but people are starting to worry about the Federal Reserve and how tight they will be with their monetary policy. This type of monetary policy could slow down the global economy even more, so the demand for crude oil should continue to fall. At this point, I like the idea of fading short-term rallies, but I would not get married to a position as the volatility is going to be all over the place.

Brent Crude Oil Technical Analysis

Brent markets initially tried to rally during the trading session on Thursday, to test the $80 level. The $80 level of course is a large, round, psychologically significant figure, so it’s not a huge surprise to see that it offered a little bit of resistance. If we break down below the lows of the last couple of candlesticks, then it’s likely that we drop down to the $75 level.

The 50-Day EMA sits just above the $85 level, and at that point I think you have the market looking at it as a potential ceiling. Either way, I think this continues to be the scheme here: fading rallies. I have no interest in buying crude oil anytime soon, but if we break above the 50-Day EMA it brings in a lot of questions for the short-sellers. Ultimately, this is about a lack of demand.

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