Crude Oil Price Forecast – Crude Oil Continues to Drift Lower on Reopening Trade Fears

WTI Crude Oil

The West Texas Intermediate Crude Oil market has fallen a bit during the course of the trading session on Wednesday, as we have broken well below the $70 level. Mixed economic numbers coming out the United States of course is not helping the situation, so I think it is only a matter of time before we have to make a bigger decision. Inventory numbers have been less than impressive, and that of course is weighed upon the market as well. However, the market is starting to turn around again, so the question at this point in time is whether or not we are going to bounce going forward? The hammer that formed during the previous session and the one that we are trying to form on Wednesday suggests that buyers are starting to come back in.

Crude Oil Video 05.08.21

Brent

Brent markets also have fallen a bit during the course of the trading session but have clearly found quite a bit of support underneath at the $70 level, and then turned around to form a bit of a hammer. At this point in time, it looks as if the market is trying to find its way back to the upside, as the demand for crude oil should in theory continue to pick up. Having said that, the market also has to worry about the inventory numbers in the United States that disappointed drastically. That being said, it is likely that we are going to continue to see a lot of back and forth, but it certainly looks as if we are showing signs of support at this point.

For a look at all of today’s economic events, check out our economic calendar.