Crude Oil Price Forecast – crude oil markets pop to start the weekCrude oil markets rallied to start the week on Monday, as we continue to see a bit of resiliency in this market overall. Helping the situation was a falling US dollar as well.
WTI Crude Oil
The WTI Crude Oil market rallied to kick off the week on Monday, gaining 1% at the open of pit trading. The market does look a bit confused right now though, as there are several different things moving oil, but with a falling US dollar, that had people somewhat optimistic. I believe that the $69 level is going to offer a significant amount of resistance, but if we can clear that area we could continue to go higher. On the daily chart, Friday had formed a hammer which of course is a bullish sign. That doesn’t mean that we have to go higher, just that obviously there are value hunters underneath willing to step in and pick up the contract.
Brent markets also rallied during the day, gaining over 1% during the same timeframe. The $78 level looks to be resistive, and if we can break above there it would complete a bit of a “rounded bottom” on the hourly chart, perhaps sending this market as high as $79.50 next. I do believe that there is a certain amount of support at the $77 level as well, so I don’t think shorting is necessarily the best of ideas. Buying short-term dips will probably work if we can stay above that $77 handle, but if we were to break down below that I think the market would “reset” closer to the $76 level. Expect volatility, but in the end I think the buyers are still rather persuasive and committed when it comes to the petroleum markets.