Crude Oil Price Forecast – Crude Oil Markets Recover After Initial Selloff

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially pulled back during the trading session on Monday only to turn around and show signs of life again. That being said, the market looks as if it is testing the $70 level for support, especially as the 50 day EMA is sitting right there. Ultimately, this is a market has a lot of noise attached to it, as people are starting to wonder about the global growth situation. That being the case, the market is likely to continue seeing plenty of buying pressure based upon what most analysts believe is a massive reopening trade to continue.

Crude Oil Video 27.07.21

Brent

Brent markets pulled back during the trading session on Monday only to turn around above the 50 day EMA to form a hammer. That being said, the market continues to see the $75 level above as a bit of resistance. If we can break above there, then the market is likely to go even further. To the downside, the $70 level is worth taking a look at as significant support, just as the uptrend line right below there would be as well. All things been equal, I think this continues to move right along the spectrum with the “reopening trade”, which continues to find plenty of bumps along the way.

If the US dollar strengthens significantly, then that could provide a little bit of negativity to this market as well, as the contract of course is priced in those very same US dollars. On the other hand, the dollar gets roasted, that could provide a little bit of a boost to the upside.

For a look at all of today’s economic events, check out our economic calendar.