Crude Oil Price Forecast – Crude Oil Markets Run Into ResistanceCrude oil markets have run into a significant amount of resistance during the trading session on Friday after showing a lot of promise. The US/China trade war has resulted in a signing of a “phase 1 deal” on Friday, but there is still a lot of uncertainty.
WTI Crude Oil
The WTI Crude Oil market has rallied during the trading session on Friday, breaking above the $60 level finally. However, we have run into a lot of resistance at the top of the uptrend channel and given back quite a bit of the gains. The question now is whether or not we can continue to go higher? At this point is difficult to tell, because quite frankly the selloff has been rather difficult. Beyond that, a lot of the risk appetite for crude oil has been a bit lackluster as there are massive amounts of supply out there. Yes, OPEC has recently cut production but at the end of the day the question comes down to whether or not there is enough demand to go through all of the supply that we currently face.
Crude Oil Inventories Video 16.12.19
Brent markets also rallied during the Friday session, breaking above the $65 momentarily, before pulling back a bit. At this point, it looks very likely that we will continue to see a lot of resistance extending to the $67.50 level. There is massive support underneath though at the 200 day EMA at the $63.50 level. Ultimately, this is a market that should continue to be very noisy and I think it’s only a matter of time before we have to make some type of significant move, but right now it looks as if the market isn’t quite ready to do so. Part of the jump would have been due to the US/China trade deal getting an initial agreement, but now there are still plenty of questions and therefore we have pulled back.
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