Crude Oil Price Forecast – Crude Oil Markets Continue to Look Bullish Despite Pull Back

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially fallen during the trading session on Wednesday, but then turned around to show signs of life again. At this point, it looks as if the $85 level is going to continue to be a bit of a barrier, as it is a large, round, psychologically significant figure. Breaking above that level could open up fresh buying, and quite frankly I think it is probably only a matter of time before that happens. Any pullback at this point will more than likely have a significant amount of support found near the $80 level. This of course is assuming that we even break down below the $82.50 level which could cause a little bit of support as well.

Crude Oil Video 28.10.21

Brent

Brent markets continue to hover just above the $85 level, as it looks to be a bit of a magnet for price. With this being the case, I think that Brent is going to continue to be a “buy on the dips” type of scenario going forward, as demand for crude oil is only going higher. At the same time, there was a severe disruption to production last year, and that of course there was a severe lack of capital expenditure to increase production. With all of that being the case, and recently OPEC suggested that they were comfortable with these high prices, this is a market that will eventually rise. If we were to break down below the $80 level, then it could change the complexion of the intermediate trend, but right now it looks as if the longer-term trend is very much intact, and we should continue to go much higher.

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