Crude Oil Weekly Price Forecast – Crude Oil Markets Rally For The WeekCrude oil markets rally during the week, testing the top of the overall consolidation as OPEC produces more cuts. That being said though, the 500,000 barrel a day cut has essentially been priced into the market, so we have not been able to break out of the consolidation range.
WTI Crude Oil
The WTI Crude Oil market has rallied significantly during the week, testing the 200 day week moving average. At this point, the market is testing the $60 level above, which is the top of the overall consolidation. We have received notice that OPEC is cutting production by 500,000 barrels a day, but quite frankly that was already priced into the market. With that being the case, it looks as if we will continue to struggle in this area but if we were to break above the $60.00 level on a daily chart, we go looking towards the $62.50 level. More likely than not though, we will probably get a bit of a pullback.
WTI Video 09.12.19
Brent markets also rally towards the top of the consolidation area that it has been in, reaching towards the $65 level. At this point in time, the $60 level underneath should be support, if we rally above the $65 level the market should go looking towards the $70 level next. That is an area that will attract a lot of attention due to the fact that it is a large, round, psychologically significant figure. Underneath, the $60 level will offer support but if we were to somehow break down below there it’s likely that the market could go down to the $55 level. Ultimately, this is a market that looks as if it will continue to chop around and I don’t know that a whole lot has been accomplished.
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