Crude Oil Price Forecast – Crude Oil Markets Continue to Look Bullish

WTI Crude Oil

The West Texas Intermediate Crude Oil market has pulled back a bit during the trading session on Wednesday, only to find buyers again after relatively mixed inventory figures in the United States. That being said, a lot of this comes down to the US dollar getting hammered, which may continue to be the case due to stimulus. While I do not necessarily think that demand for crude oil is going to skyrocket, clearly the market is favoring the upside. To the downside, I see plenty of support near the 50 day EMA offering support and of course the $44 level which is just below it.

Crude Oil Video 31.12.20

Brent

Brent markets also look very supported underneath, as a dip seems to be offering value every time it happens. It is also worth noting that the 50 day EMA is starting to turn higher, showing even more momentum on the short-term charts, and then we also have the $50 level offering significant support for at least one dollar lower. That being said, I think that the market is going to continue to be a “buy on the dips” scenario from a short-term standpoint.

All things being equal, this is a market that I do not have any interest in shorting anytime soon, but having said that, I do believe that eventually the reality of a lack of demand comes into play. I do not anticipate that we can break above the $55 level, at least not anytime soon. Stimulus of course is driving some of this move, just as the US dollar falling as. At this point though, this is all about following momentum.

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