Crude Oil Price Forecast – Crude Oil Markets Continue to RecoverThe crude oil markets recovered a bit during the trading session again on Tuesday, as several US producers are looking to cut output going forward. This of course will help with a supply issue, but we still have a long way to go.
WTI Crude Oil
The West Texas Intermediate Crude market has gapped higher to kick off the trading session on Tuesday and then shoot straight up in the air. The $24 level has offered a little bit of resistance, but quite frankly we probably have a little further to go before we find the massive selling pressure. The 50 day EMA is currently sitting at the $27 level, and therefore any signs of exhaustion in that general vicinity will be jumped upon as even though ConocoPhillips and several other companies in the United States are cutting back production, the reality is that we still have far too much in the way of supply. Although the percentage terms have been quite impressive over the last couple of sessions, the reality is that we are light years from where we were just two months ago.
Crude Oil Video 06.05.20
Brent markets rallied as well, breaking above the $30 level. This is an area where I would anticipate that sellers are starting to take a serious look at this market, not to mention the fact that the $33 level has the 50 day EMA sitting right at it. I would anticipate that we will probably see a bit of selling pressure as we approach that level. The market is still decidedly negative, and even though there is a significant amount of pressure to the upside over the last several days, the reality is that we only have a certain amount of time before traders start to look at the lack of demand again. Looking for signs of exhaustion and selling them is what I will.