Crude Oil Price Forecast – Crude Oil Markets Bounce

WTI Crude Oil

The West Texas Intermediate Crude Oil market rallied a bit during the trading session on Wednesday to reach towards the $60 level quite quickly. The question now is whether or not this rally has any real teeth, or is it simply a reaction to the blockage of the Suez Canal? The ship that ran aground in the Suez will be moved in the next few days, so then any big knee-jerk reaction will be out of the way. All things being equal, the market has recently broken a trendline so therefore I think we probably have more downside I had unless of course we take out the $63 level to the upside.

Crude Oil Video 25.03.21

Brent

Brent markets also rallied during the trading session but still look to be just under an area that could be a bit of resistance. At this point, with Europe locking down I think that eventually people are going to take a close look at crude oil and whether or not the demand is going to justify these prices. We are currently hugging the 50 day EMA, so I do not necessarily think we are going to melt down, I just think that we are going to continue to churn sideways in general. With that being the case, it is very likely that short-term sellers will return to this market sooner rather than later. However, if we break above the $67 level, then I think we go looking towards the $70 level again. Nonetheless, I do think that the increase in volume as of late and the big red bars tell me that we are likely going to see a significant amount of downward pressure.

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