Crude Oil Price Forecast – Crude Oil Markets Continue Grinding

WTI Crude Oil

The WTI Crude Oil market has initially fallen during the trading session on Thursday, but then turned around to form a bit of a hammer. The hammer of course is a slightly bullish sign but the fact that we are plowing into the 50 day EMA suggests that there are sellers above. Furthermore, there is absolutely no real demand for crude oil and stimulus is going to be smaller than anticipated. (For what it is worth, this would be the fourth stimulus package stove to think that it causes longer-term demand for crude oil is ridiculous.) At this point, I am looking for signs of exhaustion that I can sell.

Crude Oil Video 06.11.20

Brent

Brent markets of course are in the same situation, running into the 50 day EMA. Brent seems to be a bit more sensitive to places like China and the European Union, and right now China has decent demand, but the European Union has gone into lockdown again. For that matter, so has the United Kingdom so I anticipate that demand is going to continue to be week, and any short-term bursts due to stimulus should be faded at the first signs of trouble. I fully anticipate that we will revisit the lows given enough time, but we may have another day or two of fight left in the contract before the sellers come in and push. At this point, I have absolutely no interest in buying crude oil and think that it is only a matter of time before trouble starts again. Most of what we are seeing now is a simple reaction to dollar weakness.

For a look at all of today’s economic events, check out our economic calendar.