Crude Oil Price Forecast – Crude Oil Markets Pull BackCrude oil markets pulled back a bit during the trading session on Wednesday, as the 50 day EMA came into play, and of course the $27 level has a certain amount of influence on this market as well.
West Texas Intermediate Crude Oil
The WTI Crude Oil market pulled back just a bit during the trading session on Wednesday as we approach the 50 day EMA. If you are watching my analysis yesterday, I suggested that we could try to make a move towards the $27 level, which we have failed at. The longer-term trend is still most definitely negative, so I do not like the idea of trying to buy this market. I have been sitting on my hands until now, and now feel quite a bit bearish, simply because even though the inventory number was a bit better than anticipated from the EIA, the market didn’t move in a very bullish stance. Quite frankly, how could it have as it has gone straight up in the air?
To the downside, I believe that the $20 level will be targeted initially, and if we can break down below there the market is likely to go looking towards the $10 level again. Ultimately, I do think that the market has gotten far ahead of itself and therefore a bit of a pullback should be in the cards at the very least. Quite frankly, there is still a major lack of demand so that is going to cause major issues as well. Yes, there are American companies that are starting to cut now, but the reality is that we still have a long way to go before the global economy gets back to normal. With that, I still look for selling opportunities overall.
Crude Oil Video 07.05.20
Brent markets also pulled back a bit from the 50 day EMA, as it is sloping lower and it now looks as if the market is ready to rollover at the $33 level. In fact, the market has broken down below the $30 level underneath, which offers a significant amount of interest. We are closing towards the bottom of the range, at least for the day and therefore it certainly looks as if Brent is willing to drop down to the $25 level, and then possibly even the $20 level.