Crude Oil Price Forecast – Crude Oil Continues to Look Strong But Needs a Pullback

WTI Crude Oil Technical Analysis

The crude oil market in the WTI grade has pulled back just a bit from the $85 level, but at this point in time, I think this is a situation where we had hit a major resistance barrier and need to pull back in order to find a little bit of value.

You also have to keep in mind that the jobs number comes out on Friday, and that of course, has a major influence on what happens next. What I’m hoping to do is buy this market on a dip. I would love to see it drop a couple of dollars. At that point, somewhere around the $82.50 level, I would look for some type of bounce to take advantage of. Alternatively, if we break above the highs of the Wednesday neutral candlestick, then we could see this market go higher. At that point, I would expect WTI to go looking towards the $88.50 level. Either way, I have no interest in shorting.

Brent Crude Oil Technical Analysis

Brent looks very much the same. We’re sitting just below that crucial $90 level, but I do think that we will pull back a bit to go looking towards the $86.50 level if we get any type of sell-off. That’s an area I’d be very interested in buying as well, and of course, Brent has the same issue that WTI does, we have a jobs number coming out. Keep in mind that crude oil supplies are dwindling, and of course we have a lot of geopolitical risk in the Middle East right now that obviously has a major influence on the price of oil.

We are a little stretched, so I think at the very least a little bit of consolidation might be a good sign. We are heading into a cyclically strong time of year. That’s also something that you need to keep in mind. And if central banks around the world start cutting rates, that’s going to create even more demand for energy.

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