Crude Oil Price Forecast – Crude Oil Has Volatile SessionThe crude oil markets went back and forth during the trading session on Monday as traders still trying to determine whether or not there is going to be some type of production cut agreement between the various members of OPEC.
WTI Crude Oil
The WTI Crude Oil market has gapped lower to kick off the trading session on Monday, and then rocked back and forth to show a lot of confusion. That being said, it should be noted that the market was down 12% at one point, as there is a lot of confusion as to whether or not OPEC will cut production. Ultimately, this is a market that should continue to see a lot of volatility, as people are questioning whether or not Russia and Saudi Arabia can come to terms. All things being equal though, there is nothing that the two countries can do about demand. The $30 level above should offer significant resistance, so I look at any rally between here and there is a nice selling opportunity.
Crude Oil Video 07.04.20
Brent markets of course acted the same way, reaching towards the $35 level initially. By pulling back from there we have shown signs of exhaustion again, and I do suspect that it’s only a matter of time before the sellers come back. Even if we were to break above the $35 level, I feel it’s only a matter of time before the sellers come back and push lower at the $40 handle. The $40 handle is sitting just below the 50 day EMA, and that something to pay attention to as well. Ultimately, this is a market that continues to see a lot of volatility and even though the market has rallied quite nicely, it is still just a blip on the radar when it comes to the overall trend.