Crude Oil Price Forecast – Crude Oil Markets Pulled Back

The Technical Analysis of WTI Crude Oil

The 50-Day EMA of the West Texas Intermediate Crude Oil market has been reached, indicating fatigue. As we attempt to determine where we are heading next, it is highly probable that we will see a lot of back and forth in the near future. The market is concerned about OPEC reducing production at one point, but is also concerned about whether there will be adequate demand at another. If we do have a retest of that region, it is definitely important to note that the 200-Day EMA halted the overbought position in its tracks. It will be fascinating to watch how that plays out. However, a move down to the $85 level becomes possible if we were to break below the red 50-Day EMA.

Technical Analysis of Brent Crude Oil

The Brent markets have also retreated below the 50-Day EMA, while briefly breaking above the 200-Day EMA. Given that Brent started off a little stronger than WTI, I believe it is probable that it will take the lead at this point. I'd expect Brent to decline below the $90 level if we go below the 50-Day EMA.

Under the $90 mark, we would likely maintain the general negative behavior we had already seen, which would be disastrous for oil prices given that we just received the 2 million barrel per day reduction from OPEC that was promised. Not only the oil industry will suffer if the global economy is in that much turmoil, analysts predict. Risky investments will all decrease in value.