Crude Oil Price Forecast – Crude Oil Markets Break Resistance

WTI Crude Oil

The West Texas Intermediate Crude Oil market has broken through significant resistance in the form of the $43 level, driving price towards the $45 level rather rapidly. That being said, what does concern me is that we have a massive oversupply of crude oil, which gets worse by the week. In other words, this tells me that we are trading solely on the idea of everything going back to normal after the vaccine comes. That being said, we are a good year away from normalcy at best, so one has to wonder how much longer this can continue? In the short term, it looks like $45 will be the next barrier, followed by $47.50.

Crude Oil Video 25.11.20

Brent

Brent markets also are trying to break out, clearing the $47 level. At this point, it is very likely that Brent is looking towards the $50 level as it seems like people are banking on the vaccine changing the overall demand picture. While it most certainly will eventually, we are a long way away from that, and I suspect that once we start getting inventory numbers from some of these economies that have been locked down, we could be in for a nasty turn around. In the short term though, it is very likely that we are going to continue to see buyers and therefore I think that the $50 level is likely to be targeted sooner or later. With this, I am much more interested in short-term buying, while selling signs of exhaustion above.

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