Crude Oil Price Forecast – Crude Oil Markets Gap Higher on MondayThe crude oil markets gapped higher to show signs of strength yet again but have given back early gains as US traders were celebrating Presidents’ Day.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has gapped higher to kick off the trading session on Monday, to break above the $60 handle rather vehemently. However, we have turned around to form a bit of a shooting star, but this may not be as big of a surprise as one would think, mainly due to the fact that the Americans were celebrating Presidents’ Day. In that scenario, there would have been a serious lack of liquidity later in the day. At this point, it looks as if we may have a little bit of a pullback, but it is probably only a matter of time before the buyers come in to pick up anything remotely close to the idea of value. I would be especially interested in this market closer to the $57.50 level, but I recognize that the gap itself could have buyers jumping into the marketplace.
Crude Oil Video 16.02.21
As one would expect, Brent also gapped higher, reaching towards the $63.50 level before pulling back ever so slightly. The Brent market looks as if it is trying to get to the $65 level, and I do think that happens given enough time. In the meantime, short-term pullbacks probably come into play, as potential buying opportunities. The $62.50 level would be interesting, and most certainly the $60 level would be. The market continues to get a boost based upon the idea of stimulus driving up demand, and of course the possibility of a shrinking US dollar. Whether or not that is actually true is a completely different question but at this point it certainly looks as if the momentum is to the upside.
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