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Crude Oil Price Forecast – Crude Oil Markets Fall Hard

By:
Christopher Lewis

Crude oil markets fell hard during the trading session on Wednesday, as we have crashed toward previous support.

Crude oil rigs, FX Empire

In this article:

Crude Oil Prices Forecast Video for 23.11.23

WTI Crude Oil Technical Analysis

The crude oil market fell significantly during the trading session on Wednesday in early trading, as we continue to see a lot of volatility in the market. Ultimately, the $75 level is coming into the picture to offer little bit of support, so we’ll have to wait and see whether or not it holds. The size of the candlestick is obviously very negative, and therefore you need to pay close attention to it. We have been in a downtrend previously, so it will be interesting to see whether or not we can continue that downward pressure.

After all, markets are starting to finally price in the idea of a major recession, but we also have an OPEC meeting that has been pushed back later, thereby suggesting that people are going to get a little bit of relief. That being said, there is roughly a 40% chance according to analysts that there is going to be a production cut, so the downside might be somewhat limited.

Brent Crude Oil Technical Analysis

Brent markets also fell significantly during the trading session, as we continue to see a lot of volatility. The $80 level is an area that I think a lot of people will be paying close attention to, and the fact that we plunged below there could open up further selling. However, if we break down below the recent low, things could get rather ugly. On the other hand, if we were to turn around and break back above the $82.50 level, then the market takes off to the $85 level. All things being equal, this is a market that is still in the middle of trying to sort things out and try to build some type of bottom, so it’ll be interesting to see whether or not we can hold this general vicinity.

Keep in mind that Thursday is the Thanksgiving holiday in the United States, so futures markets will be closed and therefore even the CFD markets will either be close depending on your broker, or at the very least very slow. In general, I think we are still looking at a major area of inflection, and therefore we are about see an explosive move in one direction or the other.

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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