Crude Oil Price Forecast – Crude Oil Markets Continue Blood Bath
WTI Crude Oil
The West Texas Intermediate Crude Oil market has had a very tough day on Tuesday, initially trying to rally but giving that up in order to show signs of weakness yet again. Because of this, we are now threatening a major uptrend line, and this could be the beginning of something rather ugly. That being said, we need to see whether or not we can break down through the $67 level. If we do, then I think we have further to go. On the other hand, if we turn around and use this uptrend line as support, we may just simply be ready to consolidate yet again. With Jerome Powell suggesting that inflation was no longer “transitory”, the US dollar took off to the upside, thereby causing a lot of selling of commodities in general, especially the ones that were weak to begin with like crude oil.
Crude Oil Video 01.12.21
Brent of course suffered the same fate as the two commodities tend to move in the same direction. All things been equal, there are also concerns about demand in Europe, a place that Brent is much more likely to be found, as the lockdowns could cause major issues. If that is going to be the case, that I think what we have is a scenario where the market really could start to fall apart, thereby causing a bit of a panic. Again though, we are sitting at a major uptrend line, so I am not quite ready to call for that, but I do recognize that the situation and oil looks somewhat dire. One question to ask is whether or not OPEC is likely to continue boosting output? I think not.
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