Crude Oil Price Forecast – Crude Oil Markets Finally Showing Signs of EasingThe crude oil markets have been on an absolute tear as of late, so a pullback is not only expected, but it is healthy.
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WTI Crude Oil
The West Texas Intermediate Crude Oil market has initially tried to rally during the trading session on Thursday but then gave back the gains as we may have gotten a little bit too ahead of itself. After all, if we form a red candlestick for the session, it will be the first one in almost 3 weeks. This is ridiculous, and well overdone.
That does not necessarily mean that the market is going to collapse, but at this point it is likely that we will see buyers coming back into the market on dips in the short term. Ultimately, I do think that we need to pay attention to the stimulus talks, because that is probably the main driver of crude oil at the moment, right along with the idea vaccinations opening up the economy. At this point, I think that we are probably going to try to get to the $65 level but need to build up a little bit of momentum to get there.
Brent markets also have pulled back a bit during the trading session from extreme highs, and quite frankly at this point the market has gotten far ahead of itself. At this point, one of the big drivers has not only been the idea of stimulus and vaccinations, but the freezing weather in Texas. Longer-term, we are closer to the end of the bullish run than the beginning, and at this point I would be a bit nervous simply jumping in with both feet.
Pullbacks are necessary to get long in gray that we follow here, suggesting that perhaps maybe a five dollar pulled back would be a reasonable turn of events. In the Brent market, I believe that we could go to the $70 level, but I do not like the idea of getting there and just a few short sessions.