Crude Oil Price Forecast – Crude Oil Markets Continue to Grind

WTI Crude Oil

The West Texas Intermediate Crude Oil markets drifted a little bit lower during the trading session as OPEC is in the midst of the meeting. At this point in time though, we are above the 200 day EMA so for some traders that will be reason enough to be buyers of this market. For myself, I think that short-term pullbacks continue to offer opportunities, but basically just on the short-term charts. I think eventually we could get to the $49 level but right now there is no real catalyst. The falling US dollar has been driving oil higher, but it did get a bit of a reprieve during the day on Wednesday.

Crude Oil Video 20.08.20

Brent

Brent markets of course look the same, as they have the same fundamental drivers. We are at the top of the gap but unlike in the WTI market, we are sitting below the 200 day EMA, so it is not quite as bullish as the West Texas version. Nonetheless, just like in the WTI market, I believe that as long as we can stay above the 50 day EMA that dips are to be bought although you are going to have to settle for short-term trades more than anything else. For something that lasts more than a few hours, you need to see some type of significant catalyst to get things going.

This has been a very quiet market all summer, as traders try to figure out where the world is going to next. As far as growth is concerned, it is still very anemic and that of course has been working against the value of oil while the falling US dollar has been helping. OPEC has been sticking to production cuts, so that of course has been helping as well.

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