Crude Oil Price Forecast – Crude Oil Drift Lower Part of Range

WTI Crude Oil

The West Texas Intermediate Crude Oil market did fall a bit during the trading session on Tuesday, but quite frankly it is not overly surprising to see that we may struggle to get a bit lower. If we do, then the market could go looking towards the $37.50 level, but you can see that the market has essentially gone to sleep. This remains a very short-term trading environment, so therefore it makes sense that we would simply bounce back and forth in small increments. Unless you have the ability to watch charts all day, it is probably going to be almost impossible to trade this market.

Crude Oil Video 30.09.20

Brent

Brent of course is doing the same nonsense, simply treading water and going back and forth. It appears that the $42 level is slightly supportive, but the real support is probably closer to the $40.00 level. That does not mean we get there anytime soon but looking at this chart tells you everything you need to know, as there is almost no movement from a more significant standpoint. Because of this, the market is likely to see a lot of titrating over here as well, so again, unless you have the ability to play this market from the short term, it is going to be difficult.

Pay attention to the US dollar, because it will of course have a negative correlation to both of these markets, as a strengthening dollar can quite often cause a lot of negative pressure on the crude oil markets, as it will take less of those US dollars to buy a barrel.

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