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Crude Oil Price Forecast – Crude Oil Markets Stalled

By:
Christopher Lewis
Published: Sep 18, 2023, 13:37 UTC

Crude oil markets have been a bit sluggish on Monday, which makes sense considering that they have gone straight up in the air for some time.

Oil barrel, FX Empire

In this article:

Crude Oil Prices Forecast Video for 19.09.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market was very quiet on Monday, which makes a certain amount of sense considering that the market has gotten far ahead of itself. It’s not that the uptrend is about the end, but I do think that a pullback makes quite a bit of sense. There are multiple areas underneath that I would be interested in buying at, not the least of which would of course be the $87.50 level, which is right in the middle of that consolidation we have been trying to break out of band have been grinding higher through.

Even if we drop from there, the $85 level becomes very interesting as well, and I do not think that a downtrend is about to kick off anytime soon. After all, OPEC continues to cut production, namely Saudi Arabia and Russia, and therefore the supply remains very tight.

Brent Crude Oil Technical Analysis

Brent markets are also rather stagnant, although they are a little bit more bullish than the WTI market. Nonetheless, the market is likely to continue to see upward pressure over the longer-term, but we are going straight up in the air, and therefore it looks like we are likely to see a pullback that will entice more buyers trying to join a trade that has been so profitable this year. At this point, it looks like we are trying to do everything we can to fulfill the “measured move” of the bullish flag that I have marked on the chart.

Ultimately, this is a market that I have no interest whatsoever in trying to short and I do think that given enough time we have plenty of buyers underneath on these pullbacks. I would not chase oil markets all the way up here either, because quite frankly, the market has overreached into short of an amount of time. With this, I do think that it is probably going to continue to be a market where there will be plenty of buyers willing to get involved, but you don’t necessarily want to chase the price, as you could be left waiting for some time after a reasonable pullback.

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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