Crude Oil Price Forecast – Crude Oil Markets Give Up Early Gains

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially tried to rally during the trading session on Thursday but have given back the gains to reach down towards the $55 level. At this point, it is a bit difficult to determine whether this is a significant pullback, or simply a retest of the $55 level. With the Non-Farm Payroll numbers coming out on Friday, that could have a lot to do with where we go next, but at this point I would not be a seller. This could end up being a nice buying opportunity if you are patient enough. It is clear that crude oil market has caught a case of “FOMO.”

Crude Oil Video 05.02.21

Brent

Brent markets also gave back some of the gains on Thursday as well but have been a little bit parabolic, so this makes a certain amount of sense. At this point, I think that the market probably finds support closer to the $57 level, as it would be a simple pullback in order to find value again. The market certainly looks bullish and at this point in time there should be plenty of people underneath that are willing to get involved. With the jobs number coming out there is obviously a little bit of pressure, but people are also starting to wonder about whether or not the European Union will get its act together and start growing again. The economic numbers are getting worse in the European Union, not better, so that could be a bit of a divergence between Brent and the WTI Crude Oil market going forward.

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