Crude Oil Price Forecast – Crude Oil Markets Continue to Drift Lower

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially fallen a bit during the course of the trading session on Thursday to reach towards the $71 level. The market has been a bit negative as of late, due to the United Arab Emirates suggesting that the production of crude oil should be at a much higher level, trying to take advantage of the perceived increasing demand. That being said, we are still very much in an uptrend and therefore I think that if we can break above the $72 level, we may go looking towards the highs again. On the other hand, we could drop towards the 50 day EMA, there may be buyers there as well.

Crude Oil Video 09.07.21

Brent

Brent markets also fell during the course of the trading session on Thursday, as we are approaching the $73 level. Underneath, the 50 day EMA is near the $71.35 level, so that could be a target as well. Keep in mind that headlines will continue to move this market around, but it has pulled back substantially and therefore we could see some value hunting come into the picture. If we break down below the $70 level though, that would be an extraordinarily negative sign and could open up the possibility of a trend change.

At this point, I do not see that happening, but it is obvious that we have a lot of fear at the moment, not only due to the UAE, but the possibility that lockdowns are going to start back up. After all, Australia and Tokyo both are starting to lock down again and this being the case it could drive down demand for crude oil if this catches on.

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