Crude Oil Price Forecast – Crude Oil Markets Quiet

WTI Crude Oil

The West Texas Intermediate Crude Oil market did very little during the day on Thursday, as we are sitting right at the $73 region, which is where we had seen a lot of resistance previously. The 50 day EMA is starting to reach in that same area, so that should add even more resistance. All things been equal, I think that it is probably only a matter of time before we sell off a bit, but you also have to keep in mind that this time a year liquidity becomes a real issue. In other words, we may not get much of a move or we could get a sudden spike if we are not careful. Keep your position size reasonable regardless.

Crude Oil Video 24.12.21

Brent

Brent markets of course did the same thing, hanging around the $75.40 level. The 50 day EMA sits just above and offers resistance, so I do think that there is enough reason to think that this area will start to hold. That being said, if we can take out the 50 day EMA then I would have to assume that the trend has shifted to the upside again, perhaps making a run towards the $81 level. A lot of noise is going on in the crude oil markets right now, due to the fact that people had started to price in a lack of demand due to the omicron, but now it seems as if it will not be as detrimental as once feared. In other words, there is a certain amount of recovery to be expected, but we got to get past that 50 day EMA first to get bullish.

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