Crude Oil Price Forecast – Crude Oil Continues to Face Same ProblemsCrude oil markets tried to rally on Wednesday but as you can see on the chart, the same resistance areas cause major issues. The inventory number did not help.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has shown itself to be resilient, but not necessarily ready to break out. There is a complete disconnect between those who are looking at a post coronavirus world, and those who are looking at reality. After all, there will be a vaccine eventually, but sooner or later we are going to run out of storage for crude oil and it is more likely than not going to happen before the vaccine gets here. Eventually, there will be a reckoning. Right now, it does not look like the hoped-for quite ready to give up, so short-term selling opportunities probably continue to be the main way forward. With that being said, I have no interest whatsoever in trying to buy the market, but I am more than willing to short it on short-term signs of exhaustion.
Crude Oil Video 19.11.20
Brent markets initially tried to rally as well but gave back the gains at the 200 day EMA as we continue to see a lot of noise in general. At this point in time I believe that you continue to fade short-term rallies, because quite frankly there is no global growth and by extension there will be very little demand for crude oil. Yes, I understand that a vaccine is coming down the road and about a year but that has nothing to do with what is going on now. Rather, I should say that it has nothing to do with the perception of sudden global growth that people have. Disappointment will continue to be a major issue, so I look to take advantage of optimism and fade every time it gets a little overdone.
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