Crude Oil Price Forecast – Crude Oil Markets Pull Back to Start Week

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially tried to rally during the trading session on Monday, but then gave back the gains above the $40 level. Remember, we have been talking about the gap above that extends to the $41 level, and that is backed by the 200 day EMA above to keep this market down. Signs of exhaustion in this area could be sold, but it looks as if we have a little bit further to go before, we actually fill the gap. However, the markets are a bit ahead of themselves and there are a lot of questions when it comes to whether or not OPEC is going to be compliant with each other when it comes to the cuts.

Crude Oil Video 09.06.20

Brent

Brent markets also found a bit of resistance above, as the $45 level above is the top of the gap that we will be looking to keep this market somewhat down. The 200 day EMA is above the $47 level, and that of course is an area that people will be paying attention to as well. If we break down below the $40 level, then we will probably pull back towards the 50 day EMA. Quite frankly, I think the oil markets are trying to find the new normal, and that generally means some type of $10 range. We do not have that laid out quite yet, so having said that we need to be vigilant and keep our eyes open for that to happen.

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