Crude Oil Price Forecast – Crude Oil Markets Take Another Dip

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied towards the $75 level early during the trading session on Wednesday, only to give up those gains and go crashing into the $72 level. This is mainly in reaction to the latest rumor of the moment, that the United Arab Emirates is threatening to open up the spigot and start pumping more oil into the marketplace in order to diversify its economy. As OPEC+ has not been able to come up with some type of agreement, we could continue to see bearish pressure.

To the downside, the 50 day EMA is sitting at the $69 level, and of course we also have the $70 level just above that could offer support as well. After that, the market then goes looking towards the $67.50 level which was the top of the ascending triangle.

Crude Oil Video 08.07.21

Brent

Brent markets have initially tried to rally as well, reaching above the $75 level. The market has broken down from that area to reach down towards the $73 level, and we also have the 50 day EMA underneath there reaching towards the upside. All things being equal, this is a market that I think continues to see buyers on dips, but we need to find out whether or not the UAE is in fact going to come to some type of agreement or not. The $70 level underneath would be the “floor the market”, as it was a major resistance barrier before and where we had broken out above most recently. Ultimately, this is a market that is going to remain very noisy at this point.

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