Crude Oil Price Forecast – Crude Oil Markets Pullback

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has pulled back from the 50-Day EMA, showing signs of volatility. At this point, the market is likely to see a lot of noise, with the $90.00 level underneath being potential support. If we were to break down below that level, then it’s likely that the market falls significantly, perhaps reaching down to the $85 level. This is a market that continues to see a lot of noisy behavior, so I think it’s probably only a matter of time before buyers would come back in, but I don’t necessarily think the market knows what to do in the present environment. Ultimately, I think there are a lot of things out there working against the value of crude oil at the moment, not the least of which would be the fact that the global economy is about to take a serious head.

Crude Oil Prices Forecast Video for 31.08.22

Brent Crude Oil Technical Analysis

Brent markets have pulled back during the trading session on Tuesday as well, as we are reaching toward the 200 Day EMA. The 200 Day EMA sits near the $97.40 level, and it does perhaps offer a little bit of technical support. If we were to break down below that level, then it’s likely that the market could go down to the $92.50 level.

If we break above the highs of the last 48 hours, then the market could go to the $105 level. Break above that level then opens up the possibility of a move to the $110 level. That being said, there is a lot of noise out there that comes into the picture when you start looking at the Iranian deal possibly allowing for more oil into the market, a slowdown in production, but at the same time we have OPEC suggesting they may cut. In other words, expect more back-and-forth volatility.

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