Crude Oil Price Forecast – Crude Oil Markets Drift Lower

WTI Crude Oil

The West Texas Intermediate Crude Oil market has fallen a bit during the course of the trading session on Wednesday, gapping lower to reach down towards the 200 day EMA, which of course is an indicator that a lot of people pay close attention to. If we break down below the 200 day EMA, then it is likely that the market could go looking towards the $65 level. All things been equal, rallies at this point more than likely will offer resistance, especially near the $73 level. If we were to break above there, then obviously the oil market could turn around and go higher. However, I do not see that happening in the short term, and it certainly looks as if we are going to continue to see negative pressure.

Crude Oil Video 16.12.21

Brent

Brent markets also have drifted a bit lower, as we gapped lower to open up the session, only to turn around and give up the attempt at a recovery. The 200 day EMA sits at the $71.93 level, and ultimately if the market goes down to the $70 level, which is a large, round, psychologically significant figure and an area we have already bounce from. All things been equal, this is about supply and demand, and it looks as if supply is starting to catch up. Whether or not we recover in the short term is a completely open question, but it certainly looks as if we are starting to favor the downside a bit more. Ultimately, oil needs to save itself soon, or we could break down drastically.

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