Crude Oil Price Forecast – Crude Plunges to the Bottom of Its Range

Crude Oil Prices Forecast Video for 14.03.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has fallen after initially trying to rally on Monday. The 50-Day EMA came into the picture to offer resistance, and we have plunged since. There is a serious concern out there right now that there might not be enough demand out there right now to help lift the price higher. The market continues to see the range between the $82.50 level on the top and the $72.50 level on the bottom as the overall “playing field” that we are currently using.

If we were to break down below the $72.50 level, then it’s possible that we could go down to the $70 level, which of course is a large, round, psychologically significant figure and the 61.8% Fibonacci level. Any move below there could send this market much lower, but right now it looks as if we are more likely than not going to see a short-term bounce.

Brent Crude Oil Technical Analysis

Brent markets have fallen as well, after initially trying to take on the 50-Day EMA. Much like the WTI grade of crude oil, we have been stuck in a range for a while, and it looks like the support may be coming into the picture to lift things again. That being said, I think we are essentially going to bounce around in that same area until we get a better read on what global growth is going to be going forward. After all, the oil markets are the lifeblood of economic growth, and we will need to see economic growth for oil to take off.

From a structural standpoint, the supply of crude oil in the world right now is somewhat tight, so it does make sense that we would eventually take off to the upside, but if the economy is going to slow down, then it’s very unlikely that oil will get any significant support. Part of what we have seen during the day may have to do with Silicon Valley Bank and all of the fears around that, as traders may be worried about some type of contagion that could grind the global economy to a halt, but as regulators have stepped into protect depositors, systemic risk is probably abated at the moment.

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