Crude Oil Price Forecast – Crude Oil Continues Slow Grind Higher

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied just a bit during the trading session on Wednesday, as it looks like we are continuing the attempt to reach towards the $50 level. Ultimately, the $50 level is a large, round, psychologically significant figure that will attract a lot of attention, so it is worth noting. The short-term pullbacks occasionally should offer nice buying opportunities, as we have clearly seen a complete shift towards energy being positive, at least in the short term. The $43.50 level underneath should be supported, as it was significant resistance previously. Pay attention to the US dollar, it obviously will have a strong negative correlation to the oil market.

Crude Oil Video 17.12.20

Brent

Brent markets obviously rallied as well, as we are above the $50 level now. I think short-term pullbacks will offer opportunities for traders to take advantage of value, at least in the short term. The “golden cross” has recently happened, so that suggests to me that we are in fact going to continue to see longer-term traders trying to push this market to the upside. Ultimately, I have noticed in shorting, at least not quite yet. Pay attention to the US dollar because it obviously has an influence on Brent as well. Recently, OPEC has suggested that production cuts will continue, and with stimulus around the world becoming a fact, that should continue to push the idea of energy demand picking up.

This obviously is a market that has quite a bit of buying pressure underneath, so given enough time I do believe we get more of a short-term rally.

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