Crude Oil Price Forecast – Crude Oil Markets Look Range BoundCrude oil markets did a little bit of drifting on Tuesday, initially dropping but also finding a bit of support underneath.
West Texas Intermediate Crude
Oil markets continue to have nowhere to be, as the WTI market reached towards the $40 level. It does look to me as if there is a significant amount of support holding this market up, but there is massive resistance above that it simply cannot break through it seems. With that in mind I believe it is only a matter of time before we have to challenge the 200 day EMA. If we cannot break out above that level, this market will eventually fall apart. The meantime though, it looks as if there is plenty of support underneath, especially near the $38 level and the 50 day EMA which is currently at the $36.30 area.
Crude Oil Video 15.07.20
Brent markets continue to stagnate around the $42.50 level, as the world is trying to determine whether or not there will be enough demand to chew through the massive amount of oversupply that we still have. Even though OPEC has gone out of its way to/production, the reality is that the market simply is not seen enough demand push prices higher for any significant amount of time. That being said, this market has not filled the gap yet, so if one of these markets leads the other, it is probably going to be the Brent market. The 200 day EMA is settling and at the $46 range, with the gap that has yet to be filled sitting just below it. Ultimately, I do think that we will try to get there but it is probably going to take some type of external catalyst.
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