Crude Oil Forecast: Crude Oil Tests the Bottom of Its Range – 14 March 2023
Despite the challenges, there are signs that a short-term bounce could be on the horizon.
The West Texas Intermediate (WTI) Crude Oil market has been struggling as of late, with concerns mounting about the demand for oil in the current economic climate. This has been reflected in the recent fall in prices, with the market seeing a range between the $82.50 level and the $72.50 level.
The 50-Day EMA has been offering resistance to any upward momentum in the market, and there is a real concern that there may not be enough demand to push prices higher. If the market were to break down below the $72.50 level, it’s possible that we could see a move down to the $70 level, which is a significant psychological and technical level.
Despite these challenges, there are signs that a short-term bounce could be on the horizon. However, much will depend on global growth and how the economy performs in the coming months. After all, oil markets are closely tied to economic growth, and without a healthy economy, it’s unlikely that we will see any significant support for oil prices.
From a structural standpoint, the supply of crude oil in the world is somewhat tight, which could eventually push prices higher.However, this will be contingent on economic growth and demand for oil.If the economy slows down, it’s unlikely that we will see any significant support for oil prices.
The Brent market has also been struggling recently, with prices falling after initially trying to take on the 50-Day EMA. Like the WTI market, Brent has been stuck in a range for some time, with support potentially coming into play to lift prices higher.
Despite the challenges facing the oil markets, there are some positive signs. For example, regulators have stepped in to protect depositors in Silicon Valley Bank, which could help to mitigate systemic risk and prevent a potential economic slowdown. Looking at the charts, it looks like nothing is change, so I do think we will continue to see more of the same action we have seen over the last several months.
Overall, the oil markets are facing a challenging environment at the moment, with concerns about demand and global growth weighing on prices.However, there are also some positive signs that a short-term bounce could be on the horizon.We will need to keep a close eye on economic developments in the coming months to see how the markets respond.
Ready to trade WTI/USD? Here are the best Oil trading brokers to choose from.