Crude Oil Price Forecast – Crude Oil Markets Get Beat

WTI Crude Oil

The West Texas Intermediate Crude Oil market has shown itself to be very vulnerable to the currency fluctuations during the trading session as the central banks around the world continue to soften monetary policy. The Bank of England chose not to raise interest rates, and this has followed the Reserve Bank of Australia suddenly sounding more dovish. With that being the case, there are concerns around the world as to whether or not the economy is firing on all cylinders. Because of this, I think you could see a lot of noise in the crude oil market, but I do think there are plenty of buyers underneath, especially near the 50 day EMA and the $75 level.

Crude Oil Video 05.11.21

Brent

Brent markets also have pulled back a bit during the session, but at this point in time it is likely that the $80 level will continue to be important, so therefore I think it is probably only a matter of time before we see buyers jump back into this market and push it back up. Quite frankly, I think this is a scenario where the value hunters will continue to come into this market and pick up “cheap oil” every time they can. I have no interest in shorting this market, I think we are light years away from being able to do so. Granted, this candlestick does not look that great, but we are already starting to see some of the short-term charts turn around a bit, so I would not be surprised at all to continue to see plenty of bounces along the way.

For a look at all of today’s economic events, check out our economic calendar.