Crude Oil Price Forecast – Crude Oil Markets Pull Back Yet Again

Crude Oil Prices Forecast Video for 12.10.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market pulled back just a bit during the trading session on Wednesday as it looks like we are testing the 50-Day EMA. The 50-Day EMA of course is a major technical analysis indicator, so it’s not a huge surprise that we are hanging around there. That being said, there is a huge gap underneath, and it’ll be interesting to see whether or not we fill that gap before turning back around.

The biggest problem of course is the fact that the most recent move has more to do with the war that has launched between Israel and Hamas, which of course is a major event that has thrown a lot of uncertainty into the flow of crude oil. The real question is whether or not the Iranians get dragged into this, which of course would have a major influence on flows of oil to China. That being said, the market is likely to continue to see a lot of questions asked about the entire situation, and of course the supply/demand scenario. At this point, the market looks somewhat neutral.

Brent Crude Oil Technical Analysis

Brent markets pulled back a bit during the trading session on Wednesday as well, dipping below the 50-Day EMA. The gap underneath of course offers a certain amount of support as well, with the 200-Day EMA backing up that gap. I do think that it is probably only a matter of time before we rally, but right now it’s more or less a “wait and see” scenario due to the fact that the war in the Middle East is so unclear at the moment, and of course all of the fears of Iran and other countries being dragged into this war will only heighten that tension. Quite frankly, if tensions can drop a bit, that’s probably negative for oil. If we can break above the highs of the Monday session, oil probably gives looking toward $95.

As things stand right now, it is somewhat of a neutral market, but I think ultimately, we probably go higher regardless. If we break down below the hammer from last Friday, that would obviously open up the trap door for much lower pricing.

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