Crude Oil Price Forecast – Crude Oil Markets Showing Signs of Support
Crude Oil Prices Forecast Video for 04.10.23
WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil market fell during the early hours on Tuesday but is turned around to show signs of life again. By doing so and showing that the $88.50 level remains an area of interest, it’s very likely that we could get a little bit of a bounce here. Whether or not we can continue to go a lot higher remains to be seen, but there are a lot of concerns when it comes to global supply at this point. After all, the Russians and the Saudis have both cut production, and of course the United States emptied out its Strategic Petroleum Reserve in order to secure votes in the midterm elections. Now we have a situation where the Americans are going to have to come in and refill that vital national security issue. With this, it’s probably only a matter of time before we break back above the $90 level.
Brent Crude Oil Technical Analysis
Brent also faces a lot of the same dynamics, although the Americans aren’t necessarily the main issue. Ultimately, this is a market that I think given enough time probably opens up the possibility of a bounce back toward the $95 level, as it certainly looks like the buyers are coming into support the market. Given enough time, it’s very likely that we could see this market go racing toward the $100 level, and quite frankly I think both grades of crude oil will get there eventually.
The one thing that is working against the crude oil pricing is the fact that the US dollar is stronger than usual, but at the end of the day both can be strong at the same time, despite the fact that more simplistic analyst will tell you that there is a negative correlation. Ultimately, if we do break down below the bottom of the range for the Tuesday session in either one of these grades, we probably will then go looking toward the 50-Day EMA, but at this point I don’t necessarily think that is a huge concern. Even if we did, it’ll just end up being a nice buying opportunity yet again.
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