Crude Oil Price Forecast – Crude Oil Markets Continue to Grind Sideways

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied slightly during the trading session on Thursday, as we continue to struggle just below the 50 day EMA. Overall, I think there is plenty of resistance not only there, but the $30 level as well. With that in mind, I am looking to fade this market until we get a daily close above the $30 handle. If we do, then it may be time to start buying, but until then this is most certainly a negative market to say the least. At this point in time, it does look like pressure is trying to build to the upside but quite frankly we need to make a usage case, as demand has fallen off of a cliff.

Crude Oil Video 15.05.20

Brent

Brent markets also have shown a bit of resiliency during the trading session on Thursday but remain below the 50 day EMA. There is a significant amount of resistance extending towards the $35 level, so I think we may get a short-term rally only to turn things around and rollover again. Yes, a lot of countries have cut back production, but at the end of the day they are powerless to change the global picture and of course the global economy. Unless of course something changes drastically, one would have to think that the price of crude oil will not go too much higher in the short term, even though it could be slightly bullish. If we break down below the $28 level, then I believe that the momentum to the downside will increase, and we could go looking towards $25, possibly even $20 after that.