Crude Oil Price Forecast – Crude Oil Markets Continue to Suffer

WTI Crude Oil

The West Texas Intermediate Crude Oil market has fallen during the trading session on Tuesday as the EIA has now suggested that the supply of crude oil around the world has flipped from shortage to surplus. If that is in fact the case, then it makes quite a bit of sense that oil prices would continue to fall. That being said, the market is more likely than not going to continue to be noisy, and of course the 200 day EMA currently sits just below the market. If we break down below that level, then we could go looking towards the $65 level. To the upside, I do not see much in the way of strength to worry about that right now.

Crude Oil Video 15.12.21

Brent

Brent markets have also been sold off during the trading session, and it looks as if we are going to go looking towards the 200 day EMA, just below the $72 level rather quickly. If we do, then I suspect that this market will go looking towards the $70 level rather quickly. There is a bit of a hammer there and of course the pseudo-trendline that I have drawn on the chart. As far as breaking out to the upside is concerned, we would have to take out the 50 day EMA, something that does not look very likely to happen in the short term. With this being the case, I believe that the market will continue to be one that you will sell rallies and, because it will more than likely only be a matter of time before exhaustion hits any type of move to the upside.

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