Crude Oil Weekly Price Forecast – Crude Oil Shows Signs of Exhaustion

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially tried to rally during the course of the week, only to fall and form a bit of a shooting star. The shooting star suggests that we are going to perhaps pull back, reaching towards the $50 level. Underneath there, then the $47.50 level could be a target as well. In general, this is a market that I think will continue to attract a certain amount of attention due to the fact that it had been so bullish. However, when you look at the longer-term chart you can see that the $55 level in that general vicinity has caused a certain amount of distance. Ultimately, this is a market that I think has simply gotten ahead of itself.

WTI Oil

Brent

Brent markets also tried to rally a bit during the course of the week, but then gave back a significant strength. The 200 week EMA has offered resistance as well, so I think we could pull back a couple of dollars here in order to trying to find support. If we break down below the $50 level, then it is likely that we could go lower at that point. Pay attention to the US dollar, because if it does start to strengthen from a longer-term standpoint, that could really put a pummeling on the crude oil markets.

After all, this has nothing to do with demand, and everything to do with stimulus and currency devaluation in the United States. Ultimately, the market has a lot of searching to do for any real demand, and it should be noted that as price continues to rise, shale producers in the United States will put pressure on the oil market.