Crude Oil Price Forecast – Crude Oil Markets Have Rough DayCrude oil markets have pulled back significantly on Monday, as there was a major “risk off” move at the open due to coronavirus mutations in the United Kingdom.
WTI Crude Oil
West Texas Intermediate Crude Oil traders sold right away during the trading session on Monday, as there was a major “risk off” type of session as the United Kingdom has a mutated version of the coronavirus causing issues. The United Kingdom is locking itself down, and that had people concerned due to the fact that not only with the United Kingdom slow down, but the European Union is cutting traffic between the EU and the UK, so that has people thinking that there will be less demand. All things being equal, the biggest thing I think that was working against this particular grade of crude oil was the fact that the US dollar got a massive bid.
Crude Oil Video 22.12.20
Brent markets have also fallen, but it is worth noting that the $50 level has offered a bit of short-term support, so I do believe that there is a chance that we continue to bounce from here. That being said, the Russian Oil Minister did suggest during the trading session that demand could take a couple of years to pick up on a sustainable path, so that could be a bit of a fundamental reason why the market may struggle. I still believe that there is going to be another attempt at bouncing from here, but if we were to break down below the $49 level, then we could go down towards the 200 day EMA. Pay attention to the US Dollar Index, because if it starts to spike again, that will work against the value of crude oil in general.
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