Crude Oil Price Forecast – Crude oil markets continue to grind

Crude oil markets continue to grind sideways as the markets have yet to fill the gap from the Monday panic. With that being the case, the market is very likely to continue going lower given enough time, but obviously there some fighting to do.
Christopher Lewis
Crude Oil daily chart, September 23, 2019

WTI Crude Oil

The WTI Crude Oil market continues to be very noisy, as we grind sideways. The 200 day EMA sits just below, and if we can break down below there it’s very likely that the WTI market will finally go filling the gap underneath at the $55 level, an area that will attract a significant amount of attention. Whether or not we can break down through that level is a completely different question but certainly we will try as futures markets do not like gaps. Beyond that, the fundamental reason, the drone attack, has been dispelled as being a longer-term issue, so crude oil market should readjust to go back to where they once were.

Crude Oil Inventories Video 23.09.19


Brent markets continue to be very sideways and noisy around the 200 day EMA as well but has not filled the gap either. The gap would drive this market down to the $60 level if it is to be filled, and that is something that I truly expect to see. Rallies at this point should be nice selling opportunities, and it’s likely that we will see this market try to drop from here. Ultimately, this is a market that should offer opportunities to short every time the market show signs of exhaustion. It doesn’t mean that we go straight down, but most certainly we should see this gap try to get filled given enough time. At this point, global demand simply doesn’t suggest that the market should continue to go higher for the longer-term.

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