Crude Oil Price Forecast – Crude Oil Markets Continue to Rally

WTI Crude Oil

The West Texas Intermediate Crude Oil market is now threatening the 50 day EMA, as it looks like we are ready to continue the breakout. This is a market that has been quite erratic as of late, but we finally seem to have gotten a lot of the fears of the omicron variant out-of-the-way, meaning that people are starting to focus on pickup in demand for energy again. With that, I think the market is one that you buy on dips, you are looking for value to take advantage of going forward. I anticipate that we go looking towards $80 over the next several weeks. As far as selling is concerned, I have no interest in doing so, at least not in the near future, something quite drastic would have to change for me to look at it through that prism.

Crude Oil Video 27.12.21

Brent

Brent markets are also threatening the 50 day EMA, and now they look as if they are ready to go racing towards the $80 level. Just like in the WTI market, I think that any pullback that you get should be thought of as value, and that you should take advantage of it anytime you get an opportunity. Next week will probably be somewhat thin, so do not get aggressively position size, but clearly this is a one-way trade at this point. I see nothing on this chart that dictates that you should be looking to the downside, so being patient and putting unreasonable position sizes will probably be what gets you through the holidays in the oil markets. All things being equal, I think we continue to see the rally in January.

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