Crude Oil Price Forecast – Crude Oil Relatively Quiet Waiting on OPEC

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gone back and forth during the trading session on Thursday, as we get word that OPEC has agreed to adding 500,000 barrels a day of output. At this point in time, it looks like the $43 level should continue to be supportive, as it was a significant resistance barrier. Looking at this chart, the 50 day EMA has just crossed above the 200 day EMA, showing signs that we are going to enter a longer-term trend to the upside. I think that trend probably runs to about the $50 level, especially if the US dollar falls apart as it has been doing lately.

Crude Oil Video 04.12.20

Brent

Brent markets have gone back and forth during the trading session as we were waiting for the announcement, but it looks to me as if there is still plenty of support underneath and that perhaps suggest that buyers on dips will continue to go forward. Ultimately, the market should go to the $50 level, perhaps even the $55 level. I have no interest in shorting, at least not right now, because the oil market seems to have gotten everything it expected, so with that being the case it is likely that we will simply continue the same move that we have seen, which has been a gradual grind higher. With the softening US dollar, that could help for a short-term pop. Whether or not it is a longer-term trade is a completely different situation but right now I think we probably have further to go.

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