Crude Oil Price Forecast – Continues to Grind In Megaphone Pattern

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gone back and forth during the trading session on Wednesday to show a little bit of hesitation near the $65 level again. That being said, I think that short-term rallies may be sold into, we just do not know quite yet as the fundamental picture is all over the place for oil. There has been a “one-way bet” recently, due to the idea of the reopening of the world economy and of course the driving up demand to the upside. That being said, we have gotten too far in too short of a timeframe, and therefore I think we continue to see downward pressure in the short term.

Crude Oil Video 11.03.21

Brent

Brent markets have gone back and forth during the trading session as well, as you can see. The $70 level above is a significant psychological barrier, and an area where we have seen a lot of supply in the past. Because of this, I would not be surprised at all to see that offer a bit of a short-term ceiling in the market. Whether we can break above there might be a completely different story, but if we were to break above the $70 level, then I think is likely that the market is going to go looking towards the $72.50 level, possibly even the $75 level. To the downside, I believe that the market could reach down towards the $62.50 level, assuming that the downward pressure can continue. At this point though, I believe that we revisit the $70 level before that happens.

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