NEW YORK ( TheStreet) -- Crude prices will remain highly volatile because of the temperature forecast for this summer and the impact of an active hurricane season.The National Oceanic and Atmospheric Administration (NOAA) is forecasting an "active to extremely active" hurricane season and has given a 70% probability for hurricanes in the Atlantic basin this season. World oil demand is expected to surpass supply during the third quarter, as per an OPEC forecast. Demand and supply are pegged at 85.76 and 85 million barrels per day, respectively. Revaluation of Yuan would lead to increased crude oil buying from China during the quarter. In addition, the U.S. government plans to ban deep water drilling, post the oil spill crisis involving BP ( BP) in the Gulf of Mexico. The International Energy Agency (IEA) forecasts U.S. crude oil supplies to decline by 300,000 barrels a day if the ban extends for over two years. The BP oil spill has disrupted oil drilling in 33 deep-water sites. However, concerns regarding the euro zone crisis and China's attempts to prevent its economy from overheating may cap the upside in crude oil. Overall, the trend is moderately bullish for crude during the next quarter. The crucial resistance for NYMEX crude is at $87.15 per barrel. If the market sustains below this level, we could see prices moving towards $64.24 and $58.32 levels. As per Fibonacci principle, the market is currently witnessing crucial resistance at 50% of retracement. Crude prices on the NYMEX were on a trend reversal during the second quarter, and prices tumbled to $64.24 per barrel levels from a high of $87.15, to close the quarter at $78.24 levels. The market breached trend line support at $76 and tested lows at $64.24 levels. Second-Quarter Highlights: There has been an increasing correlation (0.6) between crude oil prices and the equity market. On an average, NYMEX crude oil prices stood at $84.5 in April and dropped to $74.11 in May. Investor sentiment about the economic recovery and industry observers concerned about the European debt crisis pressured the market. During the quarter, market values of major oil companies slumped following declines in crude oil prices and oil rig regulations in the aftermath of the BP oil spill. BP led the pack of oil giants, declining 49.4% in the second quarter.