Crude Oil Price Forecast – Crude Oil Markets Kick Off the Week on Positive Tone

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied a bit to kick off the trading week on Monday, showing signs of bullish pressure yet again. The US dollar has continued to drift a bit lower, so therefore it makes sense that the crude oil markets are enjoying a bit of a move higher during the trading session as it takes more of those US dollars to buy crude oil. Ultimately, this is a market that will continue to be very choppy in general, but I think it is only a matter of time before we have to make a bigger move. Right now, it looks as if higher makes more sense due to the Federal Reserve pumping out greenbacks, not necessarily anything related to demand.

Crude Oil Video 11.08.20

Brent

Brent markets also rallied, slamming into the $45 level. The 200 day EMA sits just above, so it could cause a bit of resistance but if we can break above that moving average, it probably opens up a move towards the $50 level. After that, we could be looking at a move towards $55. Underneath, just as we have in the WTI grade, there is the 50 day EMA waiting to offer a bit of support. Again, this is probably more or less a reaction to the currency market selling off the US dollar than anything else, because quite frankly not much has changed as far as the outlook for crude oil, apart from Saudi Aramco suggesting that demand could pick up, although it is hard to imagine that they do not have a vested interest in that announcement.

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