Crude Oil Price Forecast – Crude Oil Markets Continue to Recover

Crude Oil Prices Forecast Video for 15.06.23

WTI Crude Oil (US) Technical Analysis

The West Texas Intermediate Crude Oil market rallied early during the trading session on Wednesday, as it looks like we are breaking above the $70 level, but whether or not we can sustain that move remains to be seen. After all, the 50-Day EMA is sitting above and dropping, near the $72.75 level, so that might be a little bit of a lid in the market right now. Most certainly the $75 level will be as well.

Remember, we are arguing back and forth between whether or not the demand out there is going to increase, or if we are heading into something rather ugly which will drive down demand from a global perspective. For what it is worth, China has increased its import quota of crude oil, so that’s part of what has been so bullish for crude oil during the day on Wednesday. Whether or not that has any follow-through remains to be seen, but it looks as if we are basically trading between $73 above and $67.50 underneath.

Brent Crude Oil (UK) Technical Analysis

Brent rallied during the trading session on Wednesday as well, and for the same reasons that we had seen in the WTI market. Brent is probably more likely to be sensitive to China, so at the end of the day it makes a certain amount of sense. The 50-Day EMA sits right around the $77.25 level and is dropping. I think that’s the top of the overall range that we are trading in right now, with the $71.50 level underneath being supported. Underneath there, we have the $70 level which of course is going to be a big deal as well.

At this point, the market continues to be very noisy, but I do think that given enough time we will have a bigger breakout. I don’t think it will happen anytime soon though, as we are more or less trading in what is typically a summer range. Demand is putrid, but at the same time supply is rather weak as well. With this, I think we’ve got a situation where it’s a lot of short-term back-and-forth, followed by a bigger move later this summer.

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