Crude Oil Price Forecast – crude oil markets pull back from extreme highsThe crude oil markets rallied significantly during the trading session early on Thursday but found enough resistance there to roll over again.
WTI Crude Oil
The WTI Crude Oil market has tested the vital $71.15 level to only fail before it was all said and done. This is an area that has been important previously and has been tested multiple times. We failed there, showing just how resistant this area is going to be. I think pullbacks are coming, but I also see a significant amount of support near the $69.50 level as well as the $70 level from a psychological standpoint. I do think that eventually the buyers will return, as there are fears about supply as the Iranian sanctions will kick in. The US dollar fell during the day, so that also helped crude oil, but at the end of the day, until we break above the $71.15 level, we are going to struggle to move higher of the longer-term.
Brent markets also tried to rally, but struggled at the $79.25 level to pullback significantly, reaching down towards the $78 level. That is an area that has been important a couple of times, so it doesn’t surprise me that we bounced a little bit from there. Ultimately, I think that the market participants will continue to look at this market is one that they can buy on short-term dips, as we try to build up the necessary momentum to break out. However, the question now is whether or not demand will keep up with what the market is trying to price in? If we do break down below the $78 level, the market will probably then go down to the $77 level next.