Crude Oil Price Forecast – Crude Oil Markets Continue to Find Buyers

WTI Crude Oil

The West Texas Intermediate Crude Oil market fell a bit during the trading session on Monday but continues to find buyers underneath and therefore I think it is only a matter of time before we see the market turn around and rally again. After all, the “reflation trade” is very much intact, despite the fact that people are a bit concerned about Brexit during the day. The $43.50 level was a major breakout, and clearly there are a lot of buyers between here and there. At this point in time, I think we are simply killing time and digesting some of that momentum in order to continue to reach towards the $50 level.

Crude Oil Video 08.12.20

Brent

Brent markets also pulled back a bit during the trading session after forming a shooting star on Friday. Friday had hit the $50 level, but at this point time I think it is only a matter of time before we continue to try to break above the $50 level. Eventually, I think if we can break above there, then the market is likely to reach towards the $52.50 level. After that, the market is likely to continue going higher based upon US dollar weakness, and of course the idea that we are going to see more demand after the vaccine comes out. Ultimately, the market will continue to see a lot of back and forth, but I think near the $45 level we will be very well supported, unless of course something drastic happens. I continue to think that buying pullbacks is the best way going forward.

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