Crude Oil Price Forecast – Crude Oil Looks Forward to OPEC Production

WTI Crude Oil

The West Texas Intermediate Crude Oil market has been waiting to see some type of reaction to the OPEC meeting, which has announced that they will start to increase production going forward. It is a gradual increase of production, and at this point we are not necessarily sure where we are going to go right away, due to the fact that the Europeans are locking things down, but at the same time the United States added 916,000 jobs in March. In other words, it is possible that US demand may overcome the fact that Europe cannot seem to get it together. That being the case, I think we continue to see more upward pressure, but in a very choppy manner.

Crude Oil Video 05.04.21

Brent

Brent markets of course look the same, as the $65 level will cause a certain amount of resistance, but if we can break above there then I think we go looking towards the previous uptrend line. That is the same thing that we see over in the WTI grade as well. That being said, the market also has massive support underneath at the $60 level, and if we were to break down below there then we could see a move towards the $56 level. With that being the case, I think we continue to see a lot of choppy behavior, but I think in the short term we may have more of a push to try to get back to the highs. Either way, a range bound system probably makes the most sense at this point in time, at least until we get some type of impulsive candlestick that we can follow.

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