Crude Oil Price Forecast – Crude Oil Markets Continue Sideways March

WTI Crude Oil

The West Texas Intermediate Crude Oil market has been doing nothing for days, and of course Tuesday was no different. Ultimately, this is a market that I think will find plenty of reasons to go higher, if for no other reason than the Federal Reserve working against the value of the US dollar. There is an old adage that says, “never short a quiet market”, and I think that might be coming into play here relatively soon. That being said, I buy short-term dips, but I am not looking for major moves yet. If we can get an explosive candlestick to the upside, then it is likely that we will see a follow-through towards the $49 level.

Crude Oil Video 30.07.20

Brent

Brent markets of course have also been very quiet as the world tries to figure out whether or not demand is ever going to come back. Having said that, they did have a little bit more bullish pressure during the day than WTI did, and we still have not filled the gap quite yet nor have we touched the 200 day EMA in this grade. It is because of this that I believe that the Brent market may outperform the WTI, at least in the short term. Longer-term, they tend to move in the same direction anyway, but I think what we are seeing here is the market trying to figure out whether or not the falling US dollar is reason enough to go higher. To the downside, the red 50 day EMA on the chart continues to offer plenty of support.

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