Crude Oil Price Forecast – Crude Oil Markets Continue Same ConsolidationCrude oil markets rallied a bit to kick off the trading session on Monday, but we essentially are staying in the same range we have been in.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has gone a bit higher during the trading session on Monday as we continue the overall consolidation that we have been in. At this point time, the market is likely to continue to see choppy behavior, as we continue to wait and decide whether or not there is going to be enough stimulus to drive up the demand for crude oil. Quite frankly, the US dollar will also have its say, so you should pay attention to that as well. The meantime, we are simply hanging around the $52.50 level, which is right in the middle of the overall consolidation with $50 on the bottom and $55 on the top.
Crude Oil Video 02.02.21
Brent markets were bullish during the trading session as well but continue to find trouble right around the $56.25 region. The market clearly looks at the $55 level as a bit of support, and therefore I think as long as we can stay above there then you have to favor the upside in general. However, it is worth noting that every time we rally in this market, we do find plenty of resistance. In other words, I do not think we have enough momentum to truly break out yet. Just as with the WTI grade, we are looking to see whether or not there is going to be enough stimulus to drive demand for crude oil around the world, but quite frankly I think we are at a very comfortable place for market participants so I would wait for an impulsive candlestick to trade in one direction or the other.
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