Crude Oil Price Forecast – Crude Oil Markets Looking to Stabilize

WTI Crude Oil

The West Texas Intermediate Crude Oil market has done very little during the trading session on Thursday as the market looks as if it is trying to find some type of footing after a major sell off. The last three previous sessions had been negative, and quite frankly this is a market that continues to see a lot of support underneath, but if we were to break down below the hammer from a couple of weeks ago, this market falls apart. On the other hand, if we turn around a break above the $70 level, then it is likely that we will go to the upside. In general, there is the whole demand/growth equation causing headaches.

Crude Oil Video 06.08.21

Brent

Brent markets have pulled back towards the $70 level before showing signs of support again, and if you can see I have a hammer circled from a couple of weeks ago that I believe is massive support. That is an area that needs to hold and if it does not, then oil breaks down towards the $65 level. On the other hand, if we turn around a break above the top of the candlestick for the session, then it is likely that we go looking towards the 50 day EMA. This is a market that sees a lot of volatility, and as we head into the jobs number it will obviously have its say as well. If the jobs number ends up much worse than anticipated, that could put downward pressure on crude oil as it could show the economy is starting to struggle going forward. I think the next couple of days will give us a bit of a “heads up” as to where we go longer term.

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