Crude Oil Price Forecast – Crude Oil Market Stalls

The WTI Crude Oil

The West Texas Intermediate Crude Oil market has done very little during the trading session on Thursday as we are a bit overextended. Quite frankly, the market is overdone and therefore buying at this point is reckless. Any pullback at this point in time probably offers a buying opportunity, and it would make a certain amount of sense that value hunters would be found a couple of dollars lower from where we are. The $55 level underneath should continue to be a massive support level, but with OPEC driving down perceived demand for the year, we could see a little bit of a shakeout.

Crude Oil Video 12.02.21

Brent

Brent markets also are a bit overdone, with the $60 level underneath offering a bit of support. If we break down below there, it is likely that we go looking towards the $57.50 level as well. Ultimately, this is a market that I think will find plenty of buyers underneath, but right now we are simply far too overdone. I would not be a seller at this point, simply because it is far too strong of the trend to try to fight. Granted, my longer-term thesis is that crude oil needs to fall, but we are nowhere near a set up for that. In the short term, remains a “buy on the dips” type of situation going forward, and therefore it is not until we break down below the $55 level that I would be concerned with the uptrend, because the 50 day EMA should offer a certain amount of support. If it does not, that would be a technical signal for a lot of sellers to jump in.

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