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Crude Oil Price Forecast – Crude Oil Markets Relatively Quiet Heading Into the Weekend

By:
Christopher Lewis
Published: Jun 9, 2023, 15:28 GMT+00:00

Crude oil markets have gone back and forth during the trading session on Friday as we are trying to figure out where to go next. Ultimately, this is a market of hesitation.

Crude oil, FX Empire

In this article:

Crude Oil Prices Forecast Video for 12.06.23

WTI Crude Oil (US) Technical Analysis

The West Texas Intermediate Crude Oil market has gone back and forth during the trading session on Friday as we try to figure out what will be the overall tone for summer. After all, the market is very sensitive to the idea of demand, even though OPEC has cut production yet again. Ultimately, this is a market that continues to see a lot of questions asked about whether or not there is going to be enough demand to pick markets up or if we are going to continue to see supply dwindle enough to send the market higher.

All things being equal, this is a situation where we have the volatility picking up, and therefore I think you would need to be very cautious with the position sizing, and I do think at this point we are going to use the $70 level as a bit of a fulcrum point for some type of summer range.

Brent Crude Oil (UK) Technical Analysis

Brent has been somewhat quiet during the trading session on Friday, as we continue to see the 50-Day EMA above offering some type of resistance, and of course, we have a situation where the market will continue to see a lot of choppiness. The Brent market is going to look at the 50-Day EMA as some type of barrier, and if we can break above there then we could go looking to the $80 level. On the other hand, if we were to break down below the $72.50 level, then it’s possible that the $70 level could be targeted as it has been important multiple times, therefore I think we have to look at this through the prism of it being the bottom of the overall range.

If we were to somehow break above the $80 level, then it allows the Brent market go looking to the 200-Day EMA. All things being equal, this is a market that I think will continue to see more noise than anything else, so be aware of that and put your positions on with smaller size than usual. I suspect we are stuck in a range for the next couple of months.

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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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