Crude Oil Price Forecast – Crude oil markets roll over on Wednesday after inventory figure

WTI Crude Oil

The WTI Crude Oil market fell rather significantly during the trading session on Wednesday as the inventory number came out much larger than anticipated. This of course isn’t very good sign, but there is enough support underneath to keep this market alive. After all, the 50 day EMA sits just below, and we have seen the lot of support extending between the $60 level and the $61 level. That’s an area that has been very crucial for some time, and therefore I think we are simply going to stay in the same range that we have been in. What I mean by that is simply trading between the $60 and the $65 level underneath.

Crude Oil Price Forecast Video 23.05.19

Brent

Brent markets also fell, dropping towards the uptrend line underneath. There is a significant amount of support just below there as well in the form of the 50 day EMA at the $70 level, so it’s very likely that this will be a short-term pullback. At this point in time I will look towards the WTI Crude Oil market as the leading indicator these two grades of crude oil and believe that the market will move in lockstep as it typically does. However, if we were to break down below the 200 day EMA at the $60.50 level, that could be an extraordinarily negative sign for Brent and of course by extension the WTI market.

Please let us know what you think in the comments below