Crude Oil Price Forecast – Crude Oil Markets Fall Again

WTI Crude Oil

The West Texas Intermediate Crude Oil market gapped lower to show signs of weakness, drifting down towards the $37.50 level. That being said, the market looks very likely to continue going lower. After all, people are starting to wake up to the reality that there is no real demand and let us be honest here, a lot of people had dreams of massive stimulus packages coming out of the United States. While there is stimulus coming, it is not going to be the $10 trillion variety that people were starting to get excited for. Beyond that, we have had three stimulus packages previously, none of which lifted demand for any significant amount of time.

Crude Oil Video 09.11.20

Brent

Brent markets also fell during the trading session, and with economies around the world ready to lock themselves down, it makes quite a bit of sense that we continue to see selling pressure in the crude oil market as obviously demand will slip. With that being the case, I think it is only a matter of time before we reach the recent lows, and the 50 day EMA above offering resistance also made quite a bit of sense. Ultimately, I think this is a market that is slowly directing lower and quite frankly for good reason. If we do break above the 50 day EMA, there is a massive amount of resistance between there and the 200 day EMA, meaning that I am not even really interested in buying this contract until we break above the $45 level.

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