Crude Oil Price Forecast – Crude Oil Markets Pulled Back Slightly on Thursday

Crude Oil Prices Forecast Video for 19.05.23

WTI Crude Oil (US) Technical Analysis

The West Texas Intermediate Crude Oil market has pulled back just a bit during the trading session on Thursday, as we continue to see a lot of noise in this market. Underneath, the $70 level comes into the picture as support, not only from a structural standpoint but also from a psychological one. At this juncture, I believe that the market is continuing to go back and forth and try to figure out what it wants to do with itself, as we have seen so much in the way of noisy and choppy behavior.

Keep in mind that a lot of people out there concerned about the idea of global demand getting crushed in a major recession, so this has been a lot of negativity on the market and its behavior. The West Texas Intermediate Crude Oil market might be slightly insulated due to the fact that it is the preferred grade of crude oil in the United States, which does seem to be a place where people were running to. However, the market is likely to see a lot of volatility, so I think at this point we are more or less going to be in a short-term consolidation area.

Brent Crude Oil (UK) Technical Analysis

Brent markets also have seen a little bit of a pullback, as we continue to consolidate just above the $75 level. Just above, we have the 50-Day EMA racing toward trading at the moment, so that could offer a bit of dynamic resistance as well. Underneath, the $72.50 level has offered short-term support, and most certainly the $70 level will be an area where people pay close attention to as well.

At the end of the day, traders are worried about demand globally, and that will continue to put a little bit of downward pressure on crude oil, despite the fact that OPEC recently had started cutting production to fight lowering prices. If that’s going to be the case, there’s no point in fighting this market, and therefore I think fading signs of exhaustion will probably be a selling opportunity.

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