Crude Oil Price Forecast – Crude Oil Markets Threatening the Top of a Channel

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has rallied slightly during the trading session on Wednesday to reach the 50-Day EMA. The area is right around the top of the channel, and therefore it does make a certain amount of sense that we would see some selling pressure here. A pullback from here could open up and move all the way down to the $80 level.

Keep in mind that OPEC is threatening to cut production by 2 million barrels a day, but quite frankly that’s already been priced into the market. The question now is whether or not we are going to see demand get destroyed again, and therefore it’s likely that we will continue to see selling pressure regardless.

Brent Crude Oil Technical Analysis

Brent of course is trying to reach the 50-Day EMA as well, and also the top of the overall channel that we have been in. Alternatively, this is a market that I think has already priced in any type of cut, so it does make a certain amount of sense that we would see downward pressure. This is a market that I do not want to chase regardless, so I do think that you eventually get some type of downward pressure.

This will be especially true if OPEC does not cut 2 million barrels, and we should know that by the end of the session. If they were to not do so, that will almost certainly have the markets selling off as everybody’s expecting that now. The 200-Day EMA sits at the $95.65 level, and could offer a significant amount of resistance.

Crude Oil Prices Forecast Video for 06.10.22

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