Crude Oil Price Forecast – Crude Oil Markets Rally After OPEC Cut

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market rallied significantly during the trading session on Monday, but you should keep in mind that it was Labor Day in the United States, so therefore volume would have been very thin. Ultimately, this is a market that is hanging around the $90 level. The $90 level is an area that has been important more than once, but really at this point, I think it’s only a matter of time before sellers come back in as the 50-Day EMA is starting to drop and getting ready to break through the 200-Day EMA.

This is essentially known as the “death cross”, but at this point, we are also seeing a bit of a reaction to the OPEC cut announced over the weekend. It’ll be interesting to see how this plays out because we have an argument between the idea of interest rate cuts, and a lack of demand. That will continue to cause quite a bit of noisy behavior, so it’s not until we break above the $96 level that the market will show its overall change. At this point, I think we have a lot of volatility ahead of us, and I would not be surprised at all to see markets fade rallies.

Brent Crude Oil Technical Analysis

Brent markets are rallying during the thin trading session as well, but it should be noted that it is facing the 200-Day EMA just above, so we could see a bit of trouble. Furthermore, the market is likely to continue to see a lot of noise due to the global economy slowing down and OPEC cutting production at the same time. In other words, we are probably going to stay in the overall consolidation range we have been and for the last several weeks.

Crude Oil Prices Forecast Video for 06.09.22

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