Crude Oil Price Forecast – Crude Continues to Look Like a Buy

WTI Crude Oil Technical Analysis

Crude oil has been back and forth during the early hours on Friday. But quite frankly it’s a jobs report Friday so that’s not a huge surprise. Furthermore, we also are a bit extended. I think at this point in time, it does make a certain amount of sense that we see this market pullback.

And if and when it does, then here in the WTI market we probably go looking towards the $85 level. Underneath, the $85 level of course, is a large round figure and an area that previously had been resistance. So, I would assume there’s a little bit of market memory there. Oil continues to rise and there is plenty of momentum as we could go looking to the $90 level. We are overdone, but at this point I look at any pullback as a potential buying opportunity.

Brent Crude Oil Technical Analysis

Brent, of course, has pulled back slightly to reach the $90 level. If we break down below there, then it’s likely that we could see quite a bit of buying. On any significant drop, the $88 level would be an area of support, and then you have $87.50.

There is a lot of tension in the Middle East, and that will continue to move both grades of oil to the upside. There is a lack of supply that also has the same effect. And then of course there’s the cyclical trade, which basically means that at this time of year, you start to see a lot more demand for travel anyway. So, all of this combined suggests to me that crude oil is likely to continue to be a buy on the dip trade for at least the next several months.

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