Crude Oil Price Forecast – Crude Oil Markets Start to Roll Over Again

Crude Oil Prices Forecast Video for 29.12.22

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has fallen rather hard during trading on Wednesday, losing almost 3% right away. It looks like the world is still expecting a massive slowdown in economic activity, which of course has a major influence on what happens with crude oil. As we have turned around so sharply from the 50-Day EMA, it looks like it is going to continue to offer a bit of a barrier. Keep in mind that we are between two major holidays, that of course has a massive influence on liquidity.

With this in mind, I would not be surprised at all to see WTI drop down to the $75 level over the next several days. We are certainly in a major downtrend, and that has not changed regardless of the nice rally that we had.

Brent Crude Oil Technical Analysis

Brent markets also fell during the day, reaching the $82.80 level. This is an area that previously had been both support and resistance, so we break down below here, we could drift quite a bit lower. At that point, I would anticipate that we would probably challenge the $80 level rather quickly, where I would expect to see more psychological support.

Keep in mind that the markets are very thin at this point, so therefore you need to be cautious about putting too much money into the market and therefore only short-term small positions are more likely than not going to be doable. You should also keep in mind that the jobs number in January will probably have an outsized influence on energy markets, because quite frankly everybody is looking for some type of hope.

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