Texas markets

Crude Oil Price Forecast – Crude Oil Markets Continue to Show Signs of Hesitation

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market plunged to kick off the week on Monday to slice the 200-day EMA. In doing so, the market looks set to continue to be very loud, and perhaps ready to dip to the $90 level. Obviously, there are a lot of things in motion right now, not the least of which is the fact that the global economy may be slowing down. If so, the demand for crude oil will fall. On the other hand, there are also concerns about supply, which sometimes helps to keep a bit of a firm footing in this market. Watch the $90 level, this will be crucial.

Crude Oil Price Forecast Video for 02.08.22

Brent Crude Oil Technical Analysis

Brent markets also fell quite hard during Monday’s session to drop below the $100 level as New York came on board. At this point, it looks like the market is going to test the 200-day EMA below, which in itself will attract a lot of attention. For this reason, I think this is a market that will be very noisy, and we may need to pay close attention to the $95 level. If we break below this level, or if the WTI tenor falls below the $90 level, we could see a drop in Crude Oil.

All of that being said, it looks like we are still deep in consolidation with both grades of oil, so short-term traders continue to swing back and forth, and that is something to be aware of.

For an overview of all of today’s economic events, check out our economic calendar.