Crude Oil Price Forecast – Crude Oil Markets Get HammeredCrude oil markets got absolutely hammered during the trading session on Wednesday with a “one-two punch” of both bearish inventory figures and tensions coming down in the Middle East.
WTI Crude Oil
The WTI Crude Oil market initially spiked above the $65 level after the Iranians shot over a dozen missiles at US bases in Iraq, but the damage was almost nonexistent, and there was no loss of life. It has become clear that the Iranians did in fact avoid hitting any troops on purpose and have since said that they have no interest in trying to escalate the situation. If that’s going to be the case, then it makes quite a bit of sense that the oil markets will calm down. Beyond that, the inventory number with much more bearish than anticipated so this continues to put pressure on oil as well. That being said though, there should be support underneath at the 50 day EMA which is currently just above the $59 level.
Crude Oil Price Forecast Video 09.01.20
Brent markets of course acted the same way, breaking above the $70 level before breaking back down below the $67.50 level. This is a market that got absolutely hammered and you should keep in mind that tensions in the Middle East seem to affect Brent more than they do WTI, so having said that, Brent is going to be much more sensitive. At this point though, it looks like a pullback is in the cards and we should continue to go a little bit lower, perhaps reaching towards the $65 level in the short term. All things being equal you could probably still buy dips, but a lot of the noise has been driven by machines and algorithm trading more than anything else. Because of this you should be cautiously optimistic but look for value.
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