Crude Oil Price Forecast – crude oil markets find support after pullback
WTI Crude Oil
The WTI Crude Oil market pulled back initially during the trading session on Tuesday but found enough support at the $74 level to find plenty of buyers. At this point, I think we are continuing the overall consolidation between the $73 level on the bottom and the $75 level in the top. However, this is a market that has formed a daily hammer, so I think that we should continue to see a lot of volatility. Eventually, I would anticipate that the market moves beyond the $75 level and continues much higher as we begin to worry about the Iranian sanctions, but I also recognize that there are a lot of moving pieces currently. With that being the case, I continue to look at oil as a market that could offer a bit of value occasionally, and dips of course should offer opportunity. If we do break above the $75 level, then I believe that the market probably goes looking towards the $76 level.
Brent markets have pulled back during the trading session, dipping slightly below the $84 level. By doing so, we ended up forming a bit of a hammer on the bounce, and that does look rather attractive. I think the $85 level above will continue to be a barrier, but if we can break above that level it’s likely that we will continue to go higher, with the initial target being the $86 level. I like buying dips in the Brent market just as I do in the WTI Crude Oil market, as the energy demand should continue to be relatively strong, and of course I believe that the Iranian sanctions will of course continue to put upward pressure in this marketplace.