Crude Oil Price Forecast – Crude Oil Markets Settle Down

WTI Crude Oil

WTI Crude Oil markets have gone back and forth during the session on Friday, as we have seen the markets try to find a bottom. With this, the reality is that we have been a bit oversold, and it makes sense that the markets may go looking towards the 50 day EMA above. The $40 level is of course a large, round, psychologically significant figure, but it should show resistance as the 50 day EMA is sitting there. With that being said, I do like the idea of selling short-term rallies that show signs of exhaustion, as the overall attitude of the market is rather dour. With this, it is probably only a matter of time before we break down further.

Crude Oil Video 14.09.20

Brent

Brent markets also look very soft but have stabilized over the last couple of days. With that being the case, I think that the market will more than likely sell short-term rallies that show signs of exhaustion and I think that we are going to go looking towards the $35 level. That is an area that I would expect to see a significant amount of support at, so given that I believe that we are going to see more of a slow grind lower, with the occasional selling opportunity on bounces. The oil markets are far too oversupplied, and this should continue to be the biggest impediment to pricing going higher. With this, I remain bearish overall, and anticipate this to continue.

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