Crude Oil Price Forecast – Crude Oil Markets Pull Back From Exhaustion

Christopher Lewis
2 min read
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WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially rally during the course of the trading session on Friday but gave back the gains rather quickly to form a bit of a shooting star. While I do not necessarily think this is a negative sign, it does make a certain amount of sense due to the fact that we have gone straight up in the air, and this of course makes a certain amount of sense that we would need to pullback in order to find more buyers.

To the downside, I believe that the 50 day EMA crossing the $75 level offers plenty of support, and I think ultimately this is a market that is a “buy on the dips” situation, despite the fact that OPEC+ has agreed to increase production, mainly due to the fact that we are having production problems in Libya and Nigeria at the moment.

Crude Oil Video 10.01.22

Brent

Brent markets initially tried to rally as well but seem to be struggling with the idea of the barrier right around $82.50. By forming the shooting star that we have, it is likely that we will probably pull back towards the $80 level. It is more than likely only a matter of time before we see buyers come in to pick up value, especially with the 50 day EMA hanging around the $77.77 level, and of course rising. I like the idea of buying dips and ultimately crude oil looks like it is going to go much higher, despite the fact that a lot of other commodities have taken a punch to the God due to the Federal Reserve movement over the last week.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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