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Crude Oil Price Forecast – Crude Oil Markets Rally Again

By:
Christopher Lewis
Published: Sep 22, 2023, 14:35 GMT+00:00

Crude oil markets rallied again during the trading session on Friday as we continue to see a lot of supplying concerns out there.

Crude oil rig, FX Empire

In this article:

Crude Oil Prices Forecast Video for 25.09.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market rallied significantly during the trading session on Friday as we continue to see a lot of traders out there worry about a lack of supply. After all, Saudi Arabia and Russia both have cut back production, and that has had a significant effect on the market. Furthermore, oil tends to do fairly well in an inflationary environment, as people try to get out of currency and on “things.”

The $90 level is an area that has a significant amount psychology attached to it, therefore I think we’ve got a situation where the market will continue to go higher. A short-term pullback is very possible, but I think that is what people will be looking for to get involved in this market. Quite frankly, I don’t have the interest in trying to get too cute at this point in time, but I do think that we got a situation where we will eventually continue to go much higher over time.

Brent Crude Oil Technical Analysis

Brent markets also have shown a significant move to the upside, and it looks as if we are ready to take out the $95 level. All things being equal, the market will continue to look for dips to get involved, therefore there is no way to short this market. All things being equal, this is a market that continues to see a lot of buying pressure every time we do drop in the slightest, therefore I think we’ve got a situation where the market is one that you simply cannot sell. Yes, we could get some type of significant drop, but $90 is about as low as I can see this market dropping anytime in the near future.

I believe that the target is $100, perhaps even higher than that, so therefore it’s likely that we will see a lot of momentum given enough time, but quite frankly at this point in time you need to be very cautious and take advantage of value when it’s offered. I think that’s what most professionals are doing right now, and unless we get some type of contraction in demand or increase in supply, this is a market that continues to be very bullish.

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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