WTI Crude Oil Forecast: Close to Forming a “Death Cross”
09.08.2022 By TankTerminals.com - NEWS

August 8, 2022 [DailyForex] – The market is likely to see a lot of negative pressure due to so many different headwinds around the world.


This is not to say that we are going to see a massive collapse, but there are a lot of things working against the value of oil. This is even though OPEC has decided to cut production, the reality is that the market must worry about the economy slowing down, as the market has been trying to price in the fact that monetary policy tightening and the whiplash effect of the pandemic to the supply chain has caused mass chaos.

Looking for Signs of Exhaustion

The market is getting ready to see the so-called “death cross”, which is when the 50 Day EMA drops below the 200 Day EMA, kicking off a very negative longer-term signal. It quite often is a bit late, but longer-term traders may pay close attention to it. In this scenario, I suspect that we have plenty of sellers on short-term balances, especially since we see any sign of exhaustion.

Keep in mind that the US dollar strengthening could also be a bit of a problem for this market, but right now I think we are more likely than not to continue to see a “fade the rally” type of situation, thereby looking at the $95 level as a potential resistance barrier, especially now that both moving averages are sitting in that general vicinity.

As soon as we rally, I will be looking for signs of exhaustion. However, if we break down below the $85 level, that is just as good of a reason to start selling, and I will do so at the first opportunity. In that scenario, I would anticipate that crude oil falls to the $80 level rather quickly. It is not until we can break above both moving averages that I would consider buying this market, and Tuesday should be a crucial day because we will finally have full trading again and can read what the market thinks about the news over the weekend.


Book a demo to see how to offer, bid and book tank capacity globally. Quick and easy.


Tangier Island Awarded $2.3 Million Grant for Fuel Storage
06.20.2024 - NEWS
June 20, 2024 [National Fisherman]- Tangier Island, Va., sits in the middle of Chesapeake Bay wit... Read More
Sweco Supports VoltH2 in Design and Development of New Green Hydrogen Plant in The Netherlands
06.20.2024 - NEWS
June 20, 2024 [Public Now]- The European energy company VoltH2 has selected Sweco as its partner ... Read More
ONEOK Completes Acquisition of Gulf Coast NGL System
06.20.2024 - NEWS
June 20, 2024 [ONEOK]- ONEOK, Inc. announced that it has completed its acquisition of a system of... Read More
Phillips 66 Refining Margins Tighten on TMX Expansion Start-Up
06.20.2024 - NEWS
June 20, 2024 [Market Screener]- U.S. refiner Phillips 66 said on Tuesday its margins have tighte... Read More