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Crude Oil Price Forecast – Crude Oil Markets Get Hammered

By:
Christopher Lewis
Published: Jun 12, 2023, 14:33 GMT+00:00

The crude oil markets have been hammered to kick off the week, as it looks like we are yet again seeing selling pressure.

Crude oil, FX Empire

In this article:

Crude Oil Prices Forecast Video for 13.06.23

WTI Crude Oil (US) Technical Analysis

The West Texas Intermediate Crude Oil market has gotten hammered to kick off the trading week on Monday, as we continue to see a lot of noisy behavior. Because of this, it’s possible that the market could go down to the $65 level, if we can break down below the swing low from a couple of weeks ago.

Alternatively, we may see a situation where the market turns around and tries to rally to get back to the 50-Day EMA, but I am not overly optimistic about that at the moment. Even if we did, it would just simply be another move within the trading range that we have been in for a while, but it certainly looks as if the sellers are starting to become very aggressive and therefore I think it’s probably only a matter of time before we see an attempt to get down to the very bottom of the huge range, i.e. the $65 level.

Brent Crude Oil (UK) Technical Analysis

Brent markets also have fallen, showing signs of exhaustion as well. At this point, the $70 level underneath will have to be paid close attention to, as it is a large, round, psychologically significant figure and an area that has offered support a couple of times in the past. Quite frankly, I would be a bit surprised to see the $70 level get broken to the downside, but if it were to do so, that would obviously be a very negative turn of events for the market in general. With that in mind, I think this is a situation where you are probably going to get a bounce, but have a ceiling closer to the 50-Day EMA.

All things being equal, I do think this market continues to be very volatile, because it is a fight between whether or not tight crude oil supply is going to send markets higher, or if we have a situation where demand just is not going to be strong enough to warrant high prices. At this point, we are still very much in a trading range but it has to be said that the sellers seem to be quite a bit more aggressive.

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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