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Crude Oil Price Forecast – Crude Oil Markets Await OPEC

By:
Christopher Lewis

Crude oil markets have done very little during the trading session on Tuesday, as we continue to wait for OPEC to make a decision on its next supply choice.

Crude oil rigs, FX Empire

In this article:

Crude Oil Prices Forecast Video for 29.11.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market continues to be very choppy as we try to sort out what we are going to do next. After all, OPEC is in the process of debating whether or not they should be cutting production, as prices have been slashed. Furthermore, we also need to keep in mind that there are a lot of questions out there as to whether or not the markets are oversold, and of course whether or not they need help by OPEC cutting pricing.

One of the biggest negatives for the market is the fact that we could be heading into a major recession, and therefore it’s likely that we have less demand coming. That being said though, have we gone too far? I think that’s what we are trying to sort out now, and it looks like the $72.50 level underneath remains support, while the $79.50 level above offers resistance.

Brent Crude Oil Technical Analysis

Brent markets have also gone back and forth during the course of the trading session, as we continue to dance around the $80 level. With that being the case, I think you’ve got to look at this through the prism of whether or not we have enough demand, or whether or not we have dropped pricing enough to pick demand out. After all, if we head into a massive recession, it’ll be interesting to see whether or not the market can continue to go higher.

It’s worth noting that the 50-Day EMA is getting ready to break down below the 200-Day EMA, which is the so-called “death cross.” This is a negative technical indicator, but it is quite often late and therefore a lot of times you will see it right before the market turns back around. At this point though, I think a lot of what this comes down to is what OPEC decides. If OPEC gets extraordinarily aggressive with its production cuts, that could provide a bit of a lift. I do think that we are oversold, and now we are in what could be thought of as an accumulation phase, but we need to break above the $83 level to confirm that.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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