Crude Oil Weekly Price Forecast – Crude Oil Slams Into Top of Range

WTI Crude

The West Texas Intermediate Crude Oil market of course rallied right along with the news of the vaccine trials that looks to be so effective. At this point, traders started to buy anything risk related on Monday, but ran into a world of reality on Tuesday. Coronavirus numbers are starting to pick up again and therefore demand is going to continue to be very weak when it comes to energy. Crude oil of course needs a functioning economy to drive demand, and with large parts of the world starting to slow back down, it does make sense that we drift lower. Having said that, I do not know that we are ready to break out of the range either way.

WTI Oil Video 16.11.20

Brent

Brent markets of course followed the same pattern for the week, reaching towards the 50 week EMA before pulling back. The $46.50 level has offered resistance previously and showed itself to be resistive as well this week when we rose towards it. At this point, we are still very much in a downtrend even though we had a massive spike higher. At this point in time, it is likely that we are ready to continue to see a “sell on the rallies” type of situation. However, if we were to break above the $47 level, then we could see a bigger run higher. It is hard to imagine that the Brent market is suddenly going to take off to the upside for a longer-term move, at least not in this type of environment. With this, I look for more soft demand weighing upon the market.

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