Crude Oil Price Forecast – Crude Oil Markets Breaking OutCrude oil markets got a boost from inventory figures on Wednesday, breaking out of a consolidation area that we had seemingly been stuck in forever.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has found itself to be very strong during the trading session on Wednesday as the inventory number showed that there was a significant drop in inventory. That of course is bullish for the commodity and the idea of the “reopening trade.” With that being the case, I think this is a market that will continue to try to grind higher, perhaps reaching towards the $65 level above. At that point, we have seen a lot of selling so it will be interesting to see how that plays out. Ultimately, the $60 level should now offer significant support in this market.
Crude Oil Video 15.04.21
Brent markets have also rallied during the trading session, breaking above the $66 level. There is a significant amount of demand out there for crude it appears, and that should continue to lift this market. Currently, it looks as if Brent is going to try to go looking towards the $67.50 level, an area that had seen a lot of selling in the past. To the downside, I believe that the 50 day EMA will offer a bit of a short-term floor, and traders will continue to pay attention to it. If that happens, I think what we will see this point in time is a bit of a bounce.
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It appears that the demand for crude oil is picking up, and it does not hurt the both the IEA and OPEC both revise their demand forecasts higher for the rest the year, and therefore demand should continue to be a major driver of crude oil going forward.
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