Crude Oil Price Forecast – Crude Oil Markets Rally

Crude Oil Prices Forecast Video for 28.08.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has rallied during the day on Friday, and quite frankly may completely ignore Jerome Powell, because of a host of situational issues. The first one of course is the fact that the Saudi Arabian government has decided to hold back 1 million barrels from production per day, and that of course has a major influence on what happens in the market. Furthermore, you have to keep in mind that there are a lot of questions about whether or not supply will return, because quite frankly the Biden administration bought votes with the Strategic Petroleum Reserve releases earlier.

With this being the case, the market is likely to get looking toward the $85 level, and therefore a lot of support. That being said, it’s difficult to imagine a scenario where we break through there easily, so I think you need to be cautious about getting too aggressive.

Brent Crude Oil Technical Analysis

Brent markets have also rallied during the trading session on Friday, as we have bounced from the 200-Day EMA. All things being equal, this is a market that I think continues to see a lot of noisy behavior, but I think it also is trying to get to the $90 level over the longer term. The 50-Day EMA and the 200-Day EMA indicators both sit underneath, so it does make a certain amount of sense that we would see support in this region. With this being the case, I am more than willing to take a look at this through the prism of buying on the dip, and I do think that it’s probably only a matter of time before oil truly takes off.

After all, there are a lot of concerns out there when it comes to demand and supply, so I expect noisy upward momentum. If we can take off from here, and clear the $85 level, it will probably bring in quite a bit of “FOMO trading” as well. That’s the norm in the oil market, as it seems like about half of the participants been most of their time chasing the other half.

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