Crude Oil Forecast: Looks Tired and Heavy at the Moment

• The West Texas Intermediate Crude Oil market has been sitting around the 200-Day EMA, indicating that it's trying to figure out where it wants to go next.
• While there's a big gap underneath that still needs to be filled, right around the $75 level, the 50-Day EMA is also rising and sits at around the $77.12 level.
• It's likely that a pullback will occur given there is enough time as traders sit on their gains and look for opportunities to book them, especially if the market isn't going to pick up more momentum.

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It's important to note that just because OPEC decided to cut 1.6 million barrels per day from production does not necessarily mean that oil is going to be in demand, especially with a global recession setting in. This makes it very likely that a pullback is needed to find enough buyers to pick up the market again.

The Market is Still Trying to Find its Footing

On the other hand, the Brent Crude Oil market pulled back slightly during Monday's trading session, and the 200-Day EMA just above is expected to cause some issues. There's also a gap underneath that needs to be filled, and the 50-Day EMA is in the same general vicinity, sitting at around the $82.50 level. This area has been important in the past, and the $80 level is the support level from the Brent Crude Oil market itself.

It's probable that we'll see a pullback in the Brent Crude Oil market as people come to grips with the idea that crude oil production is being cut back because of economic issues, and demand could be a significant concern. Therefore, it's likely that traders will look to fill the gap and find enough buyers to pick up the market again.

In Summary

The Crude Oil market is still trying to find its footing, with the West Texas Intermediate Crude Oil market sitting around the 200-Day EMA and the Brent Crude Oil market pulling back slightly. While there are gaps that need to be filled in both markets, it's essential to pay attention to global economic trends and demand when trading oil. The potential for a global recession could significantly impact demand, and traders will need to be cautious and patient to find the right opportunities in these markets. At this point, the oil looks a bit stretched.