Crude Oil Price Forecast – Crude Oil Markets Continue to Press Gap Above

WTI Crude Oil

The West Texas Intermediate Crude Oil market has been quiet and choppy during trading on Wednesday, as we await to see whether or not the inventory situation is changing. What is working against the crude oil market more than anything else is the fact that Russia’s already starting to talk about increasing production in June, while the Gulf States are talking about the other side of the equation. At this point, the market looks to be a little bit confused, but the gap above still needs filled and it certainly looks as if the buyers are going to try to make that happen. I believe the $30 level underneath should be somewhat supportive.

Crude Oil Video 28.05.20

Brent

Brent markets also look as if they are supported just below, in the form of the 50 day EMA. There is still a gap above here that needs filled as well, and as a result I think it is only a matter of time before the markets tried to push into that gap. The $40 level of course is a significant round number, so course there will be traders look at that as well. Ultimately, if we break above that level then it is time to fill the gap which extends all the way to the $45 level. On the other hand, the market breaks down below the 50 day EMA, then it is likely that we will break down towards the $30 level. At this point though, it looks like the buyers are very tenacious so one would have to think that it favors a bit of a grind to the upside still.

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This article was originally posted on FX Empire

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