WTI Oil Price Forecast – Oil Markets Turn Bullish

Key Insights

• WTI oil managed to find support after the major pullback and is trying to gain upside momentum. 
• Traders remain worried about a potential recession but strong demand during the summer season supports oil markets. 
• A move above the 20 EMA will push WTI oil back to the $120 level. 

WTI Oil Tries To Rebound After Recent Sell-Off

WTI oil has found support near the $110 level and is trying to move higher as traders try to find some balance between recession risks and rising demand during the summer season.

WTI oil has recently moved from the $120 level to the $110 level amid a broad market sell-off, which was caused by recession fears. Traders are worried that developed economies may find themselves under strong pressure in the second half of the year.

Traders will have to wait until Thursday to see the latest data on crude oil inventories from EIA. The recent reports indicated that crude inventories have started to move higher but gasoline stocks remained under pressure.

In the near term, the key question is whether demand will stay strong when oil is in the $110 – $120 range. If data from EIA confirms that demand is healthy despite current oil prices, WTI oil may move back to the $120 level.

WTI Oil Settled Above The 50 EMA

WTI oil has managed to stabilize after the recent sell-off. It has received strong support below the $110 level and is trying to gain upside momentum.

WTI oil has already managed to get above the 50 EMA, which is a bullish sign. RSI remains in the moderate territory, so there is plenty of room to gain upside momentum in case the right catalysts emerge.

The next significant resistance level is located at the 20 EMA near the $116 level. A move above the 20 EMA will signal that WTI oil is ready to get to the test of the $120 level.

On the support side, WTI oil needs to settle below the $110 level to continue the pullback. A move below the recent lows near the $109 level can lead to another sell-off in the oil markets.

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