Crude Oil Price Forecast – Crude Oil Markets Looking Supported

WTI Oil

The West Texas Intermediate Crude Oil market has been very choppy during trading on Monday as OPEC continues its meeting on whether or not to have production cuts. There is some dissension among the ranks, but it is more than likely going to extend those comes to one point or another. This is essentially what the market looks to be pricing thin, and of course the idea of the world after the vaccine needing more energy. The demand could very well pick up but at this point I think that the upward momentum has only so far to go. Because of this, I believe that the $50 level above will be a “hard ceiling” in any shock to the upside.

Crude Oil Video 01.12.20

Brent

Brent markets also look well supported just below but will be more sensitive to the OPEC meeting than WTI. With this being the case, I am paying close attention to the $46.50 level, which seems to be the previous resistance that is now turning into support. $50 above would be the initial target, but this market could go as high as $55 over the intermediate term. Longer-term, I think that this market also suffers from a lack of demand but in the short term people are focusing more on the coronavirus vaccine than anything else. Ultimately, I do think that we are looking at a very choppy couple of months, but the initial move is probably going to be to the upside. The 200 day EMA will more than likely be a target if and when we finally get some type of significant pullback.

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