Crude Oil Price Forecast – Crude Oil Markets Continue Sideways Move

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied a bit during the trading session on Thursday, trying to gain back some of the losses from the disappointment on Wednesday with the inventory figure. At this point, it is probably influenced more or less on the idea of stimulus apnea in the United States or something of that ilk. Keep in mind that demand for crude oil will continue to be a major issue and therefore I think it is difficult to get overly excited about. At this point, I think we simply are continuing the same sideways action around the 50 day EMA more than anything else.

Crude Oil Video 23.10.20

Brent

Brent markets continue to see back-and-forth action as well, as we are looking at a scenario where the energy demand will be questionable and of course we have OPEC+ falling apart when it comes to the production cuts. Whether or not that holds may have a huge influence on what happens next but quite frankly I think this is a market that will ultimately trying to figure out a way to make a move lower. The $40 level underneath will be interesting, as it should be somewhat supportive.

To the upside, the $45 level and the 200 day EMA will more than likely be resistance. In the meantime, you are looking at a situation where we are simply going back and forth. Stimulus could give crude oil a bit of a pop higher, so pay close attention to that scenario as it continues to unfold, but that should be temporary at best.

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