Crude Oil Price Forecast – Crude Oil Continue to Drift in Thin Trading

WTI Crude Oil

The West Texas Intermediate Crude Oil market has done very little during the trading session on Tuesday as we are hanging around the $48 level. The $48 level course is crucial in the short term, as it is a large, round, psychologically significant figure. To the upside, the $50 level is an area that a lot of people will be paying attention to, and perhaps even aiming for. To the downside, the $44 level underneath should be support as well. Further adding interest to that area is the fact that the 50 day EMA is sitting in that general vicinity as well.

Crude Oil Video 30.12.20

Brent

Brent markets have also done very little, as we are hanging about the $51 level. This is an area that does not mean much from a technical analysis standpoint other than the fact that it is between the $50 level and the previous high at the $53.25 level. At this point, the market is very unlikely to be very attractive in one direction or another for a significant move, but ultimately if we can break above the $53.25 level, then the market could go looking towards the $55 level, possibly even the $60 level after that. To the downside, the 50 day EMA is crossing the $47.25 level, and reaching towards the $50 level.

With this being the case, I do think that it is only a matter of time before we see some type of “buy on the dips” type of mentality, but I do not know how much further we go to the upside despite the fact that we are getting stimulus. At this point, sooner or later people are going to worry about demand.

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