Crude Oil Prices Forecast Video for 18.09.23
WTI Crude Oil Technical Analysis
The West Texas Intermediate Crude Oil market initially tried to rally a bit during the trading session on Friday, as it looks like we are perhaps in a little bit of profit-taking heading into the weekend. This does make quite a bit of sense, because there are so many moving pieces out there that could affect all markets.
On a pullback, I think the $87.50 level is an area where buyers could come back into the picture, as it was the body of the most recent consolidation. All things being equal, this is a situation where you are buying on the dips as OPEC continues to cut production. This is a simple supply and demand equation, and with that being the case, with 1 million barrels out of the market every day, it does make sense that we continue to see higher pricing. With that being the case, this is a market that I think continues to see a lot of noisy behavior, but ultimately, we go higher.
Brent Crude Oil Technical Analysis
Brent markets also look a little exhausted, as we are pulling back from the initial push higher during the early hours. I think at this point, you are looking for value in this market that you can take advantage of, and therefore I think it’s probably only a matter of time before you see market participants come back into this market and look for value. The $90 level is an area that I think makes a certain amount of sense as it was a previous consolidation, and of course a large, round, psychologically significant figure.
The $95 level above is a large, round, psychologically significant figure that seems to be offering a little bit of resistance, so it does make a certain amount of sense that we would see this come into the sphere of trouble, but it also makes a certain amount of sense that it could end up being a target over the next couple of trading sessions. I have no interest whatsoever in trying to short crude oil at the moment, it is certainly struggling with supply at the moment.
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