Crude Oil Price Forecast – Crude Oil Markets Continue to See Overhead Resistance

WTI

The West Texas Intermediate Crude Oil market has gone back and forth during the trading session on Wednesday as we continue to struggle with the idea of being above the $60 level. After all, there is a significant amount of freezing in Texas that has crushed supply, but there are also whispers in the markets that OPEC is going to start releasing more supply into the market. If that is the case, that will obviously drive down the value of crude oil, and quite frankly this is a market that has gotten far ahead of itself so a pullback at the very least makes quite a bit of sense. The $57.50 level underneath would be the first support level that I think people will be paying close attention to.

Brent

Brent markets went back and forth during the course of the trading session on Wednesday as the $65 level has been shown to be resistive. The market is moving higher based upon the idea of stimulus and of course the idea that supply is going to tighten, but during the trading session on Wednesday it seems that people are starting to look at this as a market that needs to pull back, and perhaps regroup closer to the $60 level.

All things being equal, this is a market that I think probably continues to see a lot of volatility, and at this point I think you need a little bit more of a base to go higher. However, if we were to turn around a break right above the $65 level, then Brent probably goes looking towards the $70 level over the longer term.