Crude Oil Price Forecast – Crude Oil Markets Press the Top of a Descending Channel

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has gone back and forth during the trading session on Thursday as we are hanging around the 50-Day EMA. The market has been rather strong for a minute, but I think at this point we are getting a little stretched. OPEC has cut 2 million barrels, but at the same time, the market is going to have to deal with the fact that the global economy is shrinking. A shrinking global economy is not conducive to higher oil pricing, so therefore I think we have a situation where you have to look at this through the prism of whether or not there is going to be enough demand. At this point, a pullback does make a certain amount of sense.

Brent Crude Oil Technical Analysis

Brent markets have reached the 50-Day EMA as well and look as if it is ready to see plenty of resistance in this area. Ultimately, the market is at the top of the overall channel, and therefore I think it’s likely that we will continue to see a bit of resistance here, so a pullback does make quite a bit of sense. On the other hand, if we do break out to the upside it will probably have a lot to do with the idea of economies heating up again, but right now central banks are doing everything they can to cool things off, and therefore it does not look like oil is going to be able to continue to go much higher for a significant amount of time.

Crude Oil Prices Forecast Video for 07.10.22

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