Crude Oil Price Forecast – Crude Oil Markets Get HitCrude oil markets got hit a bit on Thursday, dipping significantly but also look as if they are trying to recover towards the end of the session.
WTI Crude Oil
The WTI Crude Oil market has shown itself to be resilient, breaking down towards the $40 level. However, we have seen a lot of buyers in that general vicinity and it looks as if we are going to see some resiliency in this market. Quite frankly, I think that the market will continue to see a lot of noise in general so the one thing that we need to pay attention to is what happens with the US dollar. If the US dollar continues to strengthen, that could work against the value of crude oil. Furthermore, the Iraqis have suggested they want out of the production cuts, so it could be the first signs of a crack in the ice when it comes to that. In the short term though, I suspect there is going to be a little bit of a bounce.
Crude Oil Video 04.09.20
Brent markets have broken below the 50 day EMA during the trading session, and certainly look a bit more vulnerable than the WTI market. I think it is only a matter of time before the market needs to make a serious decision when it comes to the future of crude oil, which quite frankly is starting to look a bit less appealing. However, the jobs number will have a major influence as well, so we will not have any true answers until the end of the day Friday as to what the intentions of the market happens to be. I would more than likely suggest that we may get a short-term bounce but I also can make a strong argument for simply waiting until Monday morning to place a trade.
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