Crude Oil Price Forecast – Crude Oil Markets Continue to Grind AwayThe crude oil markets fell a bit during the trading session on Friday as we head into the weekend, showing signs of a little bit of exhaustion.
WTI Crude Oil
The West Texas Intermediate Crude Oil market pulled back a bit during the course of the trading session on Friday, but then turned around to show signs of life again. By doing so, it suggests that we still have momentum underneath that could send this market to the upside. Furthermore, the members of OPEC are suggesting that we may see further production cuts, so that may be providing a little bit of a floor in this market. Beyond that, you also have to keep in mind that people are starting to price in the “post-virus economy.” I believe this is short-lived though, and the $50 level above is probably going to be resistance.
Crude Oil Video 30.11.20
Brent markets obviously will be doing the same thing, pulling back only to turn around. I think at this point we will probably go looking towards the $50 level, and if we can break above there it is likely that we could go to the $55 after that. That being said, Brent is a little stretch, perhaps more so than the WTI market. At this point in time, I think that pullbacks should be thought of as potential buying opportunities in the short term, but longer-term I am much more interested in shorting signs of exhaustion as there is not enough demand and there was not enough demand before the buyers come so this point in time it is hard to imagine that there will be afterwards for some time going forward. In the short term though, it is all “risk on.”
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