Crude Oil Price Forecast – Crude Oil Markets Pull Back Slightly

WTI Crude Oil

The West Texas Intermediate Crude Oil market has fallen a bit during the trading session on Friday to close out the year with a negative candlestick. That being said, we are still well above the 50 day EMA and therefore it looks like we are going to find buyers on any type of dip that happens. All things being equal, as traders came back to work, we will more than likely see risk appetite takeover. That being said, the market is likely to continue seeing more of a “buy on the dips” mentality, and therefore I think that is probably the best way to play this market.

Crude Oil Video 03.01.22

Brent

Brent markets also have pulled back just a bit, sitting above the 50 day EMA which is currently at the $78 level. With that being said, I expect any type of dip at this point in time will be bought into, as it is to be thought of as value. Demand will continue to pick up as concerned about omicron continue to be put in the back of people’s mind, and therefore they start to look at this as a potential way to play the inflationary pressures. The reopening trade is still very much intact, and as long as that is going to be the case that a lot of crude oil will be needed. I have no interest in shorting this market anytime soon, and I do believe that it is probably only a matter of time before we reach the highs yet again.

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