Crude Oil Price Forecast – Crude Oil Markets Continue to Dance at Resistance

WTI Crude Oil

The West Texas Intermediate Crude Oil market rallied a bit during the trading session on Thursday but continues to stall at roughly the 50 day EMA. Furthermore, the $30 level above should offer a bit of resistance, but what we are paying attention to more than anything else at this point seems to be the rig count in the United States being cut in half. With that in mind, it makes quite a bit of sense that the market would rally, but at this point we have gotten so far in such a short amount of time that it makes sense that we take a bit of a pause. Demand is still going to be a major problem, so I think the upside is still somewhat limited.

Crude Oil Video 08.05.20

Brent

Brent markets also have rallied, for much the same reason. The Saudi government is charging more for delivery of crude, so that of course drives up the cost underneath. That being said though, we are sitting just below the 50 day EMA here as well, and it looks like a breakdown below the Wednesday candlestick could bring in fresh selling. We still have to worry about the oversupply in relation to the very weak demand when it comes to the end-user, so I do believe that the upside is somewhat limited, and we have gotten too far to the upside in far too short of amount of time.