Crude Oil Price Forecast – Crude Oil Markets Continue Bullish Grind
The West Texas Intermediate Crude Oil market rallied during the trading session again on Tuesday as we continue to see a lot of bullish pressure. At this point in time though, it’s more of a grind than anything else and I do think that short-term pullbacks will probably continue to be the best way to get involved. At this point, the market has a lot of noise between here and $62.50, so it’s likely that we have a lot of work ahead of us in order to reach that level. At this point, I still believe that the market is probably best bought on dips, and certainly can’t be shorted as we have seen a lot of tenacity after the OPEC production cuts announced the other day were received by the market.
Brent markets rallied a bit during the trading session on Tuesday as well, breaking above the $66 level. The $67.50 level shows quite a bit of resistance as well, so I think at this point we are going to try to grind towards that direction but will struggle to do so in a clean and easy manner. Quite frankly, I think it’s only a matter of time before we see this market pull back in order to find buyers, and I would be especially keen on signs of support at $65 to get involved. I have no interest in shorting though, because for me it’s obvious that the market is extraordinarily well supported underneath, and at this point it certainly looks as if it is one that can be thought of as a slow grind higher.
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