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

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially dropped slightly during the trading session on Wednesday only to turn around and show signs of strength again. Quite frankly though, this is a market that is extraordinarily parabolic, and I think that the risk now is that everybody exits at the same time. I think we are going to go looking towards the $60 level given enough time, and that is almost certainly the target. I do not know that we can get above there, but even if we do, I do not think it is going to be straightforward. A pullback is more than likely going to end up being a buying opportunity if you are patient enough.

Crude Oil Video 11.02.21

Brent

Brent markets also look overdone, as we are now threatening the $62 level. The market desperately needs to pull back, perhaps to the $60 level before we can build up enough momentum to go higher. Quite frankly, this is all about the “reflation trade”, and the idea that there will be much more in the way of demand when it comes to energy as stimulus continues to drive money into risk assets, and quite frankly the idea of a sudden burst of demand after the economy opens up makes a certain amount of sense. However, the question at this point is whether or not it justifies these prices? I suspect not, and I do believe that it is only a matter of time before we get a significant pullback. At that point, then you start to look for buying opportunity, but I would not be a buyer at these high levels.

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