Crude Oil Price Forecast – Crude Oil Markets Hit Resistance

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gapped higher to kick off the trading session on Wednesday, reaching towards the top of the overall range that we have been in, but then turned around to show signs of exhaustion. At this point in time, the market is likely to see that as an opportunity to take profit, because quite frankly even though the vaccine has been announced, the reality is that we are a long way from economic expansion to the scale that energy traders seem to be believing in.

Crude Oil Video 12.11.20

Brent

Brent markets rallied a bit during the trading session on Wednesday, reaching towards the 200 day EMA but it is starting to see a little bit of resistance in this area. Because of this, it is likely that the market will get a little bit of a pullback. This will of course suggest that the market is probably going to try to go back towards the 50 day EMA at the first signs of trouble. Ultimately, pay attention to the US dollar as well because we get more of a “risk off move”, then it is likely that the oil market will fall right back down.

We have gotten far too ahead of ourselves when it comes to the idea of demand for crude oil, and I think at this point it is only a matter of time before gravity comes back into play. Demand is not out there, and even though we are trying to price in a full economic recovery, the market has gotten far ahead of itself.

For a look at all of today’s economic events, check out our economic calendar.