Crude Oil Price Forecast – Crude Oil Markets End the Week on Back Foot

WTI Crude Oil

The West Texas Intermediate Crude Oil market has pulled back a bit during the trading session on Friday in what I would assume is more or less going to be profit-taking. We are sitting just below the $65 level, an area that has been extreme resistance multiple times in the past, and one would have to assume would be the same in the future. Because of this, I think a lot of people are willing to take their profits and go home, and then start looking for value on some type of dip. However, if we were to break above the $65 level, that could open up a new fresh leg higher.

Crude Oil Video 01.03.21

Brent

Brent markets also pulled back towards the $65 level during trading on Friday, as we continue to see a bit of erratic trading behavior over the last couple of weeks in the crude oil market. Quite frankly, we needed to see some type of pushback because the market cannot go in one direction forever. It simply is not healthy to do that, so I am waiting for an opportunity to get a bit more clarity. The $70 level and the Brent market is massive resistance just as the $65 level is in the WTI grade, and I think the analysis is essentially the same in that general vicinity. Short-term pullback should be buying opportunities, but it is worth noting that shale in America becomes a lot more profitable at these high levels so supply will almost certainly be picking up soon.

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