Crude Oil Price Forecast – Crude Oil Markets Continue to See Overhead Pressure

Published: Dec 9, 2022, 15:37 UTC2min read
Crude oil markets simply cannot pick up their feet at the moment, and even though we had a nice rally at the beginning of the session on Thursday, we have given all of that up yet again.
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Crude Oil Prices Forecast Video for 12.12.22

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has done very little during the day on Friday, which is not overly surprising considering that the market is probably somewhat exhausted. After all, the selling has been somewhat relentless, despite the fact that OPEC has cut 2 million barrels per day. At this point, it looks like the $76 level offers resistance, due to the fact that we had seen so much support there previously. At this juncture, I think it’s obvious that every time we rally, it’s a selling opportunity of the first signs of exhaustion. Even if we were to break above all of that, the $80 level in the 50-Day EMA come back into the picture as resistance as well.

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Brent Crude Oil Technical Analysis

Brent continues to do very little as well, as we ended up forming a bit of an inverted hammer on Thursday also, with the $80 level offering resistance. Ultimately, this is a market that I think has gotten far ahead of itself to the downside, so I would expect some type of bounce, but that bounce will get sold into rather aggressively if history is to be believed. The $75 level underneath could offer support, and if we were to break down below there, it just shows that we are going to get even worse downward pressure. Ultimately, this comes down to demand, and a severe lack of it around the world as we slow down the global economy. Furthermore, if the US dollar starts to strengthen again, that will add even more downward pressure.

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

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