Crude Oil Price Forecast – Crude Oil Markets Dropped Slightly to Kick Off Thursday Session

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market fell rather significantly to kick off the trading session on Thursday, only to turn around and show signs of life as it looks like value hunters have come back into the market. All things being equal, the market is going to pay close attention to the $75 level underneath which has been a significant support level previously, and of course has been previous resistance so there is a certain amount of “market memory.”

On the upside, the $80 level is a potential resistance barrier, and therefore I think that could make a nice target. Furthermore, we also have the 200-Day EMA in that general vicinity as well. On the other hand, if we break down below the $75 level, it could open up a flush of selling pressure, opening up the possibility of a move down to the $72.50 level, which was also an area of interest in the past.

Brent Crude Oil Technical Analysis

Brent markets initially pulled back during the course of the trading session on Thursday only to find support underneath near the $80 level, an area that is a large, round, psychologically significant figure, and an area that previously has been supported. If we can bounce from here, it’s likely that the market goes looking to the 200-Day EMA above, which sits right around the $85 level. Brent is also going to move on to the same issues that the WTI market is, mainly a question of whether or not there is going to be demand.

Markets are starting to price in recession, and that does not do favors for crude oil, although at the same time you can say that the OPEC production cuts have provided a little bit of a lift. Quite frankly, you also have to pay attention what’s going on in the Middle East as concerns about geopolitics can drive oil higher as well due to potential escalation of the fighting. At this point, it doesn’t look very likely that we will see a major escalation, so that may be a threat that is starting to cool. Regardless, this is a market that is going to be very choppy.

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