Crude Oil Price Forecast – Crude Oil Markets Plunge

Crude Oil Prices Forecast Video for 04.05.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has plunged again during the trading session on Wednesday, as it looks like the market is finally starting to price in just how bad the global recession could be. With this being the case, the demand for crude oil will of course be front and center, it should be anemic to say the least. With this, we have also seen the market plunged well below the $70 level during early trading, and it looks like we could drop even further than that. The last couple of candlesticks have been brutal, and you would have to think that sooner or later there would be a certain amount of value hunting or at least short covering in order to take in profit. That being the case, we could get an opportunity to start shorting again after a small bounce, but you will have to be very patient in order to realize that trading opportunity. The 50-Day EMA has offered a significant ceiling, and should continue to do so on any bounce.

Brent Crude Oil Technical Analysis

Brent markets also look very miserable during the day, as it appears that the market cannot get out of its own way. The contract looks to be heading toward the $70 level given enough time, which would not be a huge surprise considering just how much noise we have recently seen, and of course just how much concern there is around the world when it comes to whether or not the global economy is going to stand still. With that being the case, it’s going to be very much like the WTI crude oil market, with the idea that the 50-Day EMA should be your ceiling as far as technical analysis is concerned. If we get a situation where the market finds itself drifting below the $70 level, things could get rather ugly.

As far as buying is concerned, I just don’t see the catalyst to do so at the moment, especially considering that this happened in the face of OPEC cutting 1.6 million barrels from production each day. That suggests that OPEC knows that demand is going to be very weak.

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