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Crude Oil Prices Trade below the Key Moving Average

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Rectangular trading channel 

NYMEX-traded WTI (West Texas Intermediate) crude oil futures contracts for December delivery fell for the second day. Prices fell from the key resistance of $48 per barrel on November 5, 2015, within the rectangular trading channel. Crude oil prices have been fluctuating between $43 per barrel and $50 per barrel in the last two months. Cushing crude oil stocks are driving crude oil prices.

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Support and resistance 

Bullish traders could see resistance at $50 per barrel. Prices hit this mark in July 2015. Lower crude oil prices and slowing US production could benefit crude oil prices. Bearish traders could see support at $38 per barrel. Prices hit this level in August 2015. Record production from Russia and Saudi Arabia could drag crude oil prices lower.

Crude oil price forecast

The Russian Energy Ministry forecasts that crude oil prices could average around $52 per barrel in 2015 and $55 per barrel in 2016. The World Bank forecasts that crude oil prices could average $52 per barrel in 2015. OPEC (Organization of the Petroleum Exporting Countries) estimates that crude oil prices could average around $80 per barrel in the long term. Oil prices are trading below their 20-day, 50-day, and 100-day moving averages. Its suggests that oil prices could trade lower. Meanwhile, oil prices’ average volume is 40% more than the five-day and ten-day average volume.

The roller coaster ride of crude oil prices impacts US upstream players like Hess (HES), ConocoPhillips (COP), Noble Energy (NBL), and Occidental Petroleum (OXY). The volatility in the market also impacts ETFs like the iShares US Oil & Gas Exploration & Production ETF (IEO) and the PowerShares DWA Energy Momentum ETF (PXI).

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