Crude Oil Price Forecast – Crude Oil Markets Continue to Grind Higher

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied significantly during the course of the trading session on Wednesday as we are waiting for the Federal Reserve. At this point, it looks as if we are trying to get to the $65 level, but this market still has a lot of noise just above. It certainly looks as if short-term pullbacks will be a buying opportunity as the market continues to use the 50 day EMA as dynamic support, and therefore I think this continues to be a bit of a “buy on the dip” type of market.

Crude Oil Video 29.04.21

Brent

Brent markets also continue to see buyers going forward, and it looks like we are trying to take out the resistance above. That being said, it comes down to whether or not traders are willing to bet on the recovery going forward but it should be noted that recently OPEC+ and British Petroleum both have suggested that demand is going to continue to pick up for the rest of the year, perhaps as much as 6 million barrels a day. With that being the case, oil is almost impossible to short at this point, and it looks like we continue to buy on dips going forward.

I have no interest in trying to short crude oil, despite the fact that eventually we will probably have to come back to normalcy. In the short term, a lot of pundits are now starting to call for $80 a barrel later this summer. This most recent move has been a lot of consolidation, but that should not be a huge surprise considering just how straight up in the air we had shot earlier this year.

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