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Crude Oil Price Forecast – Crude Oil Markets Continue to Rally

By:
Christopher Lewis
Published: Sep 27, 2023, 14:11 GMT+00:00

Crude oil markets continue to see a lot of upward pressure, as it looks like we are trying to break out to the upside yet again.

Crude oil, FX Empire

In this article:

Crude Oil Prices Forecast Video for 28.09.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market rallied rather significantly during the course of the early hours on Wednesday, as it looks like we are trying to do everything we can to break out to the upside. The $92 level now is under attack, and I think it is probably only a matter of time before we see the crude oil market break toward the $95 level. At this point, any type of short-term pullback is more likely than not going to be a buying opportunity, with the 20-Day EMA offering significant support underneath.

If we were to break down below the 20-Day EMA, the market could go looking to the $85 level, but that seems to be very unlikely at this point, as the Russians and the Saudi Arabian government both have decided to cut production voluntarily, to drive pricing higher. Because of this, I think that it is probably only a matter of time before we reach the $95 level, possibly even $100.

Brent Crude Oil Technical Analysis

Brent rallied as well, as it looks like it’s ready to reach the $95 level. The $95 level is a large, round, psychologically significant figure, and an area that has recently offered a bit of resistance. If we were to break above there, then it opens up the door to the $100 level in the print market as well. The Brent market will be especially sensitive to global restrictions on production, as it is more of an international market anyway.

At this point, it’s very likely that we continue to see the oil market become more or less a “buy on the dips” scenario, where there’s no real way to short this market. Ultimately, I think we have to look at this through the prism of finding value as it occurs. If we were to break down below the 20-Day EMA in this market, it opens up a move down to the $87 region, perhaps even the 50-Day EMA. That being said, I don’t have any interest in shorting oil in general at the moment, because it has so much inherent strength currently.

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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