Crude Oil Price Forecast – Crude Oil Markets Get Hit in Low Liquidity
WTI Crude Oil
The West Texas Intermediate Crude Oil market has broken down significantly during the trading session on Friday to lose roughly 10%, as traders around the world panic at the thought of a new coronavirus variant, and the possibility of lockdowns coming. If that continues to be a serious threat, then you have to worry about the possibility of demand for crude oil falling apart.
That being said, the market has found support at the crucial 200 day EMA, and officials out of South Africa are already starting to talk about how the virus does not seem to be vaccine resistant in this new version, so if that is the case there is a very good chance that this turned around right away. Keep in mind that the market is very thin when looking at this candlestick.
WTI Oil Video 29.11.21
Brent markets also crashed, reaching towards the 200 day EMA. It is very likely that this market will continue to see a lot of support in this area, so it will be interesting to see whether or not the buyers come in to pick this market up. At this point in time, I think it is obvious that the market may have gotten ahead of itself, so it will be interesting to see how this plays out. I believe by the end of the day on Monday we will know whether or not the uptrend can continue or not. If we get a daily close below the 200 day EMA, we are more than likely going to go looking towards the $65 level. Weekend news will obviously have a major part of play here.
For a look at all of today’s economic events, check out our economic calendar.