Crude Oil Price Forecast – Crude Oil Continues to Pressure Upside

WTI Crude Oil Technical Analysis

You can see that the WTI market does look very strong at this point in time. And it’s probably only a matter of time before we break out to the upside and go racing higher. This is something that’s been coming for a minute now. And with that being the case, we really are just finally at that precipice of a major breakout. Even when that happens, I suspect that the market goes looking to the $85 level. Short-term pull backs will continue to be buying opportunities at this point, but with supply dwindling, geopolitical concerns, and of course, central banks around the world looking to cut rates, every dip has to be thought of as an opportunity. Eventually, this will break through, and once it does, the momentum should be rather drastic.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same at $84.50. Pressing that, if we can break that, maybe the $85 level, we can really start to take off. And I think the next $5 will be rather quick. We have to look at this through the prism of markets that are forming golden crosses, markets that are paying attention to the fact that as central banks cut rate around the world, it will drive up the demand for energy.

Furthermore, supply has shrunk a bit and we have so much pressure here that I think it’s probably only a matter of time. Once we do get that breakout, it’s going to be pretty vicious and I plan on being along for the ride. Understand that these breakouts do take a lot of effort, so we’ll have to wait and see whether or not we get any follow through right away. We may get the occasional bang out against the resistance and then a pullback, but either way, I think this is looking increasingly like it’s going to be one of the more explosive markets this year.

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