Crude Oil Weekly Price Forecast – Crude Oil Markets Continue Sideways GrindCrude oil markets rallied during the week as we headed towards the Independence Day holiday.
WTI Crude Oil
The West Texas Intermediate Crude Oil market rallied during the bulk of the week, with perhaps the exception of the Friday session which of course was a holiday. With that being the case, there was a bit of illiquid trading, so therefore I would not read too much into the fact that Friday was slightly negative. Ultimately, if we can break above the gap, then we could try to test the 50 week EMA. If we can break above there, then it is likely that the crude oil market goes looking towards the $50 region.
WTI Oil Video 06.07.20
Brent markets rallied a bit during the week as well, but they have not filled the gap like they have in the WTI grade. At this point, the $45 level is an area that you should pay attention to as it was the top of the gap, and as a result it is likely that we will have a short-term push to the upside. We may get a pullback initially, but eventually I do think that the Brent market find a way to fill that gap. To the underneath, the $35 level should be massive support, so mean that we even break down below the $40 level.
There are still a lot of debates as to whether or not there is going to be enough demand to drive prices down, and of course whether or not OPEC is going to continue to increase production cuts. We are essentially in a realm of balance right now, so that of course is something that the market likes.
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