Crude Oil Price Forecast – Crude Oil Markets Pull Back Slightly

WTI Crude Oil

The WTI Crude Oil market has pulled back ever so slightly during the trading session on Tuesday as we continue to see concerns about Iranian oil flooding into China driving down the efficacy of production cuts coming out of OPEC. At this point, the demand also becomes a question and now I think we probably make a move towards the trendline that is so clearly defined on the chart. This is not necessarily to say that we have some type of major selloff coming, at least not yet, but rather we are “reverting to the mean.” With that being said, I expect that we will continue to chop around in general, but also recognize that we are still very much in an uptrend.

Crude Oil Video 17.03.21

Brent

Brent markets have also pulled back during the day, as the $70 level continues to be a bit of a headache. Ultimately, I think this is simply a market that needs to pullback in order to build up the necessary momentum to go higher, assuming that is exactly what happens. Brent could be a bit more susceptible to selling in the short term though, as China tends to focus on heavier grades of oil. All of that being said, there is a trend line underneath that should support this market near the $65 level, so I think this is simply a pullback in what is a longer-term move to the upside. In general, it does make sense that we would see a bit of noise here, simply because the $70 level is such a large, round, psychologically significant figure that will attract a lot of headlines.

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