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Crude Oil Price Forecast – Crude Oil Bounces After Biden Announces SPR Release

By:
Christopher Lewis
Published: Nov 23, 2021, 17:06 GMT+00:00

The crude oil markets have rallied after Joe Biden announced that the United States was releasing 50 million barrels from the Strategic Petroleum Reserve. In other words, it was too little too late.

Crude Oil Price Forecast – Crude Oil Bounces After Biden Announces SPR Release

In this article:

WTI Crude Oil

The West Texas Intermediate Crude Oil market has found the $75 level to be supportive, as we have rallied all the way to the 50 day EMA rather quickly. At this point, the market is likely to continue to see buyers jumping into it due to the fact that there is serious demand, and the Americans have released roughly 2 and half days’ worth of petroleum. In other words, it has suddenly become a “nonstory.” Any significant release of crude oil from the SPR had already been priced in, so it does make quite a bit of sense that as there was more bark than bite, we should continue to go much higher. At this point, I anticipate that this market goes looking towards $85 level.

Crude Oil Video 24.11.21

Brent

Brent markets have skyrocketed during the trading session to break above the $81.50 level. At this point in time, the market has broken above the 50 day EMA and is very likely to continue going much higher. With this being the case, I anticipate that the market goes looking towards the $85 level given enough time, which of course is a large, round, psychologically significant figure, and an area that we have seen a lot of resistance at previously. If we can break above there, then we can continue a longer-term “buy-and-hold” type of situation, which is what I do believe happens given enough time, as the reopening trade continues to drive up the demand for crude oil. All things being equal, I have no interest in shorting crude oil in either grade.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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