Crude Oil Weekly Price Forecast – Crude Oil Continues to Fall

Crude Oil Prices Forecast Video for 01.05.23

WTI Crude Oil (US) Weekly Technical Analysis

The West Texas Intermediate Crude Oil market has drifted lower during the week, testing the 200-Week EMA. More importantly, they have broken down below the gap, and that of course is a negative turn of events. Ultimately, I think this is a situation where you have a lot of fear out there when it comes to the idea of the global economy slowing down. After all, there will be less demand for crude oil, as everything stops.

We initially gapped higher a couple of weeks ago as OPEC shocked the market with a surprise production cut. However, it has become increasingly obvious that the global demand for crude oil seems to be dropping, and if that is in fact going to be the case, pricing should drop as well.

Brent Crude Oil (US) Weekly Technical Analysis

Brent markets have also fallen to reach down to the 200-Week EMA, so it’s worth noting that we are testing a major technical level. If we break down below there, then it’s likely that we see the market drop all the way down to the $70 level, something that is very possible considering just how negative the overall economy seems to be. Rallies at this point in time will continue to attract short-sellers, and therefore I think you have to look at this as a “fade the rally” type of the situation. Ultimately, there’s no real reason to think that oil is going to suddenly take off to the upside, at least not until the global economy itself changes direction, as we are more likely than not heading into a rather nasty global recession.

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