Crude Oil Price Forecast – Oil Likely Running Higher but Needs a Pullback

Crude Oil Prices Forecast Video for 03.08.23

WTI Crude Oil Technical Analysis

In recent weeks, the West Texas Intermediate Crude Oil market has experienced a remarkable upward trend. However, signs of hesitation have emerged, raising questions about the sustainability of the rally. In a global economic landscape filled with uncertainties, traders are closely monitoring crucial levels to understand the potential future directions of crude oil prices. Meanwhile, Brent crude oil has closely mirrored WTI’s movement but faces its own set of challenges around the $85 level.

The significant surge in WTI Crude Oil prices over the past few weeks has been remarkable. However, this rapid ascent has prompted some investors to exercise caution, resulting in a slight pullback during the recent trading session. This development is expected given the rapid price increase. If the market continues to retreat, we can expect heightened volatility around the $80 level. A decisive break below this point could indicate a shift in market sentiment, potentially leading to further targets near the 200-Day Exponential Moving Average, which currently stands at approximately $77.50.

Conversely, if the rally continues, traders must pay close attention to the $84 level, which acts as a key resistance before reaching the psychologically significant $85 mark. A successful breach beyond $85 may open doors to further gains, with the possibility of the market reaching $90.

Brent Crude Oil Technical Analysis

Brent crude oil has closely mirrored the trajectory of WTI, showing a similar upward trend. However, it appears to be encountering resistance around the critical $85 level, a price point that holds psychological significance for traders. To sustain its upward momentum, Brent needs to surpass the $87.50 level, potentially paving the way for a target of around $90. Further advancements beyond this level might even signal a move towards the $95 price range.

In the event of a pullback in crude oil prices, both WTI and Brent markets are likely to find support near the 200-Day Exponential Moving Average. For WTI, this support region lies around $82.50. Although these markets have shown signs of being overextended, the underlying bullish sentiment is fueled by OPEC’s ongoing production cuts. While the global economic outlook remains uncertain, supply constraints have taken center stage in the minds of traders.

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