Crude Oil Price Forecast – Crude Oil Markets Pull Back to Kickoff Week

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied just a bit during the course of the early hours on Monday, but then pulled back from the crucial $70 level. The $70 level of course is a large, round, psychologically significant figure, and therefore it makes a certain amount of sense that we were to fall from there. After doing so, I think that we saw plenty of support though, and that is something worth paying attention to. With this being the case, I think that dips will continue to be bought into, as we have seen demand forecasts continue to pick up.

Crude Oil Video 08.06.21

Brent

Brent markets have initially rally during the course of the trading session on Monday but then pulled back towards the $71 level. There is also significant support underneath near the $70 level, and therefore it is likely that the large, round, psychological significance of the number could come into play, and of course the fact that the market has a significant amount of resistance there that had recently been broken through.

That being said, the market is more than likely going to see a significant amount of “market memory” going forward. All things been equal, the market is likely to continue to go looking towards the $75 level, as demand should be picking up with major economies around the world opening up. In the short term, we may get a pullback, but I look at that as a potential buying opportunity and what should be a very strong move of the course of the next couple of weeks.

For a look at all of today’s economic events, check out our economic calendar.