Crude Oil Price Forecast – Crude Oil Markets Give Back Gains On FridayCrude oil markets pulled back rather significantly during the trading session on Friday as we have reached a major resistance barrier. That being said, part of this may have been profit-taking as well.
WTI Crude Oil
The WTI Crude Oil market has pulled back significantly during the trading session on Friday, showing a very bearish candle after a relentless move higher. Most of the move higher was based upon an OPEC production cut that has been voted into existence, but overall this is a scenario that should continue to play out over time. After all, the crude oil market got a nice boost from that but at the end of the day the question is whether or not we are going to continue to see that momentum. There is a certain amount of concern when it comes to global demand, which of course is going to be slow as the global economy seems to be doing the same.
Crude Oil Inventories Video 23.12.19
Brent markets also have pulled back a bit during the trading session on Friday, showing signs of weakness to finish the week. We are getting close to the top of the overall range though, so this isn’t a huge surprise. The question now is whether or not we can continue to find buyers underneath. The $65 level is an area where I think the buyers would probably get involved but if we do break down below there then it’s likely that the market goes looking towards the 200 day EMA.
The 50 day EMA looks likely to cross above the 200 day EMA and if it does it should attract fresh money. Having said that though, we are at the top of an overall range and it looks like it will at least in the short term continue to respect that.
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