Crude Oil Price Forecast – Continue Moving Higher on Stimulus HopesThe crude oil markets rallied again on Thursday, as it looks like we are still moving forward based upon the idea of stimulus in the United States.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has shown itself to be bullish yet again, as we continue to grind towards the $50 level. That is of course a large, round, psychologically significant figure that could come into play, and at this point in time I think it is only a matter of time before sellers would show up in that region. Nonetheless, I think it is too juicy of a target to ignore, and therefore I think we need to get there sooner rather than later. If we get some type of stimulus deal, that probably is reason to send crude oil to that level. Whether or not there is actually demand is a completely different question.
Crude Oil Video 18.12.20
Brent markets of course have rallied as well and as we are above the $50 level. I suspect the initial target would be $52.50 but given enough time I would not be surprised at all to see this market dance around quite a bit, perhaps pulling back towards the $50 level before rallying again. From a longer-term perspective, I think we probably still have a lot of problems ahead when it comes to crude oil, so I am actually looking for an opportunity to sell for a bigger move. The short term though, I think we have a bit of a shot higher, so it really comes down to your time frame at this point. I believe there is more money to be made to the downside eventually, but we would need to see the market realize that demand is simply not going to keep up.
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