Crude Oil Price Forecast – Crude Oil Continue to Move on Stimulus

Updated : Oct 9, 2020, 17:44 UTC•2min read

Have continued to grind a little bit higher due to the fact that there is hope for stimulus, so that could send oil higher, at least in the short term.

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially pulled back a bit during the trading session on Friday, but then shot higher. Ultimately, this is a market that still has a lot of noise just above, so therefore I am not overly excited about buying. The crude oil is essentially moving on the idea of stimulus coming into the markets, which would in theory at least drive up the demand. That does not work in the longer term, but in the short term it could push this market higher. We are closer to the top of the overall range, so that is something worth paying attention to, so I am looking for signs of exhaustion to sell into.

Crude Oil Video 12.10.20

Brent

Brent markets also look very much the same, breaking above the 50 day EMA, and perhaps looking at the 200 day EMA as a target. Ultimately, this is a market that I think continues to grind back and forth and it now looks as if the market is getting close to the top of the overall range, so given enough time I think that the market will continue to go back and forth, with the overall idea of the US dollar rallying or falling.

Know where WTI Crude Oil is headed? Take advantage now with

Your capital is at risk

The negative correlation between the greenback and crude oil continues to be something to pay attention to, so with that being the case I think you have to pay attention to the US Dollar Index more than anything else, and I am looking for signs of exhaustion to take advantage of as the demand simply will not pick up, despite what you think about stimulus.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing! Sign up for a daily update delivered to your inbox