Crude Oil Price Forecast – Crude Continues to See Upward Pressures

WTI Crude Oil Technical Analysis

West Texas Intermediate Crude Oil Market broke down below the $85 level. And as you can see, we have seen a lot of buyers and now it looks like we will continue to see a lot of upward pressure. That being said, I think this is a market that continues to ride on momentum. And of course, technical analysis suggests that we have recently cleared up a major barrier. I think at this point in time we are looking at a potential move to the $87.50 level and then after that, the $90 level. Short-term pullbacks continue to get bought into. I don’t see that changing anytime soon and I think the absolute floor in the market is at the $80 level.

Brent Crude Oil Technical Analysis

Brent is a market that has fallen pretty significantly early in the day only to turn around and retake the $90 level. This is a market that may have to consolidate a bit and that might be true with oil in general as we had gotten stretched but ultimately there are plenty of reasons to think that every dip will get bought into. Supply is starting to get stretched around the world.

We have a lot of geopolitical concerns in the Middle East and of course if central banks in fact are going to start cutting interest rates, that could put upward pressure on crude oil anyway due to the fact that demand, at least in theory, should pick up from industrial usage.

There’s also the cyclical trade which states that in the spring we start to see more travel, and that tends to put a lot more pressure on the price of oil as well as people continuing to demand more. With all that being said, I’m not selling in this market at all and I’m looking at every pullback as a potential buying opportunity.

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