Crude Oil Price Forecast – Crude Oil Plunges

Crude Oil Prices Forecast Video for 23.06.23

WTI Crude Oil (US) Technical Analysis

The West Texas Intermediate Crude Oil market has fallen rather hard right away during the open session on Thursday, as it looks like the 50-Day EMA will continue to cause resistance, and traders continue to look at this through the prism of the global economy slowing down. That being said, the market is likely to continue to be somewhat range bound as we are during most summers. Underneath, the $67.50 level comes in as support, so I think you get a situation where you will continue to see a lot of short-term back-and-forth trading, so if you have a nice range-bound system you like using, this might be a good market for you.

Brent Crude Oil (UK) Technical Analysis

Brent markets have also fallen during the day, as the 50-Day EMA has caused a headache yet again, and therefore I think you get a situation where we continue to look at that as the short-term top in the market, while the $71.50 level seems to be a significant support level. It probably extends down to $70, so I would also keep that in the back of your mind.

Much like the WTI market, I think Brent has the ability to be traded in a back-and-forth manner, perhaps for the rest of the summer as market participants typically try to find some type of range to settle into during the so-called “driving season” in the United States.

One thing worth paying attention to is that OPEC continues to cut production, and oil doesn’t seem to care, at least not as far as the markets are concerned. This is a bad sign for the global economy because oil of course is a major indication of where economic growth is going, or perhaps where it is not. With that being said, it looks like we are simply killing time, trying to figure out what to do next. I would not put huge positions in this market right now, rather I would prefer to trade short-term positions back and forth with a reasonable size going forward. If we do break out of the range, then both of these markets could have a $10 move just waiting to happen.

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