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

WTI Crude Oil

The West Texas Intermediate Crude Oil market rallied significantly during the trading session yet again on Monday as we continue to see oil defy gravity. Quite frankly, this is a bit concerning to me because we are accelerating so quickly. These types of markets tend to end poorly, but it certainly looks as if we have a destination in mind, the $60 level. I would not be surprised at all to see the market reach that level, because it is a psychologically and structurally important price point. However, we are starting to see questions about demand underneath the surface, as the vaccine rollout has not exactly been asked dollar as people had hoped. This is all about stimulus and hopium, but certainly you cannot short this market anytime soon. Buying pullbacks probably works as long as we can hang on to the $55 level or better.

Crude Oil Video 09.02.21

Brent

Brent markets have broken above the $60 level during the trading session in what would be considered a very bullish move indeed. That being said, I think that the market probably finds reasons to go higher, but we are getting a little bit stretched at this point. Whether or not there is going to be true demand for Brent seems to be a relevant at this point, because the narrative is that the market is going to see a massive influx of demand as soon as the shot gets distributed for vaccinations. Unfortunately, this is nowhere near the truth but there has been significant demand coming out of China, mainly in order to refill stockpiles. Once that ends, we could have some issues but in the short term it is obviously a “buy on the dips” scenario.

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