The crude oil markets were all over the place during the trading session on Wednesday, as the inventory number came out much more weak than anticipated. However, the weekly inventory number tends to be rather volatile and unreliable, so perhaps traders are starting to see through it.
WTI Crude Oil
The WTI Crude Oil market went back and forth during the trading session on Wednesday, as we are dancing around the 200 day EMA. The inventory number missed by almost 7 million barrels, which of course is a horrific number. However, this announcement has a long history of being all over the place so it is more than likely most traders will put too much thought into it. At this point, the market looks very likely to chop around in general, and as a result it’s likely that we stay within the range.
Crude Oil Price Forecast Video 07.11.19
Brent markets pulled back a bit as they reached towards the 200 day EMA, which is sloping lower. Ultimately, the market looks as if it is trying to dance around between the 200 day EMA and the 50 day EMA. At this point, the $62.50 level is an area that has attract a lot of attention in both directions, so it makes quite a bit of sense that we would continue to see noisy behavior. I think short-term pullbacks at this point will probably continue to find buyers, especially near the 50 day EMA which is currently just underneath the $61 level. All things being equal, this is a market that probably stays in the same range that it has been in, mainly because of the OPEC production cuts that are supposedly coming in December. Beyond that though, we have a serious lack of demand so it’s a “push pull” scenario.
Please let us know what you think in the comments below
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.