Crude Oil Price Forecast – crude oil markets positive for TuesdayThe crude oil markets were positive during the trading session on Tuesday, reaching towards resistance above. It looks as if we continue to bet upon the idea of higher energy pricing due to supply disruptions.
WTI Crude Oil
The WTI Crude Oil market has started to grind a bit to the upside, reaching towards the $75 level above. That of course is a large, round, psychologically significant figure, and an area that has caused a bit of resistance in the past. I think if we can break above that level, it’s likely that we will continue to go towards the $77.50 level, and of course beyond their if things start to heat up. If the US dollar starts to fall, that will also add to bullish pressure. I believe that currently we are simply trying to build enough momentum to break above the $75 level, so short-term pullbacks should be buying opportunities.
Brent markets have also rallied, and even broke above the top of the gap down from last week. Now it looks as if we will try to make a move towards the $80 level, which of course is psychologically important and of course will probably attract a lot of attention. At this point, I think that short-term pullbacks will be buying opportunities with the $70.50 level offering support. The moving average that I track are starting a move higher as well, so I think that this is a very bullish looking market. I have no interest in shorting this market, at least not until we would break down below the $77 level, something that I do not anticipate seeing anytime soon. Forex markets are starting to look as if we are turning against the greenback, so that should help.