Crude Oil Price Forecast – Crude Oil Markets Continue to Consolidate

Christopher Lewis
Published: Sep 26, 2023, 14:10 GMT+00:00

Crude oil markets have consolidated during the Tuesday session, as we approach the 20-Day EMA.

Crude oil barrels, FX Empire

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Crude Oil Prices Forecast Video for 27.09.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has gone back and forth early during the Tuesday session as it looks like the 20-Day EMA is going to try to offer a bit of support, and therefore I think you’ve got a situation where we are testing whether or not we will consolidate, or if we are ready to turn around and go higher. I have no interest in shorting oil at this point, it is obviously far too bullish, and of course you have to think of the supply/demand situation, which of course also has the pressure of Russia and Saudi Arabia continuing to cut production. Furthermore, you also have inflation to worry about, which typically will lift the price of oil regardless.

If we do break down below the 20-Day EMA, then it’s possible that we could go down to the $85 level, but right now I’m not overly concerned about that. On the upside, it’s very likely that WTI will try to get to the $100 level over the longer term and therefore I am a buyer.

Brent Crude Oil Technical Analysis

Brent markets also initially fell during the trading session but turned around at the 20-Day EMA indicator. Ultimately, this is a market that I think continues to see a lot of volatility, but at the margins, this is a market that is still very bullish as well and you can even make an argument that we are trying to form some type of bullish flag or pennant, which of course will attract a lot of technicians. Regardless, we are still very much in an uptrend, and I don’t see that changing anytime soon.

With that being the case, the market is likely to continue to see a lot of volatility, but I think every time that crude oil markets fall, you have to look at that as a potential buying opportunity in a market that has outperformed almost everything else. With that being the case, I don’t change anything here, and I look at any opportunity to get long as an opportunity to profit further. The $90 level underneath seems to be offering support, and it’s very likely that Brent, much like WTI, is going to go looking toward the $100 level.

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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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