Crude Oil Price Forecast – Crude oil markets continue to press higher

WTI Crude Oil

The WTI Crude Oil market rallied a bit during the trading session on Tuesday, reaching towards the top of the consolidation area that we have been in for roughly a month. We have not been able to break out of this short-term range, so therefore until we do it’s probably best to sit on the sidelines or look for short-term back and forth type of trading opportunities. I do believe that longer-term we have more of an upward proclivity, but until we break above the $58 level it’s difficult to get overly excited about buying oil.

Brent

Brent markets tried to rally a bit during the trading session on Tuesday as well, and as you can see the $67.50 level continues to be a major barrier. Because of this, the market doesn’t look as if it’s ready to take off yet, and therefore I would anticipate a short-term pullback. That doesn’t mean that we should be selling, just that we are still in the same range that we have been in for what seems like ages now. At this point, it’s very likely that buyers will be sitting at lower levels to pick up crude oil “on the cheap”, so more back and forth is probably expected. If we can break above the $68 level, then the market will be free to go to the $70 level next. To the downside, we have the 50 day EMA curling higher that should be supportive as well.

Please let us know what you think in the comments below