Crude Oil Price Forecast – Crude Oil Markets Run Into Resistance Late In The Week

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially rally during most of the week but has given back almost all of it to form a shooting star. That is a very negative sign, especially considering that we are at the very top of the overall range. I think at this point we are likely to see a little bit of a pullback, as traders around the world will start to worry about the global growth situation which seems to be deteriorating a bit. All things being equal though, this is a scenario where I think we are simply going to pull back from here by a couple of dollars.

WTI Video 23.12.19

Brent

Brent markets rallied during the week as well and have given up about half the gains. This is sent as negative as the WTI market is as far as the candlestick shape, but it is telling us the same thing: that we are approaching the top of the range and it looks like the sellers are going to try to make a bit of a stand. I anticipate a short-term pullback, probably by a couple of dollars over here as well. Even though OPEC has cut production, the Americans obviously are going to be listening as they continue to pump more oil out. Beyond that, the biggest concern of course is going to be whether or not we have enough global growth out there to chew through the supply and therefore drive prices higher.

Please let us know what you think in the comments below