Crude Oil Price Forecast – Crude Oil Markets Quiet on Friday

WTI Crude Oil

The West Texas Intermediate Crude Oil market went back and forth during the trading session on Friday, as we had very little in the way of volatility. As we head into the weekend, there is still no reason to get overly aggressive in one direction or the other as the stimulus talks continue to drag on with no result. Having said that, it is only a matter of time before we get stimulus in America, but the question now is about the size more than anything else. It is difficult to guess ahead of time, but we have more of an upward bias than anything else. Buying dips continues to be the best way forward.

Crude Oil Video 14.12.20

Brent

Brent of course followed a very similar trajectory, meaning that it did not do much. It is basically hanging around the $50 level, it looks as if we are going to continue to see buyers on dips, and now that we are retesting this $50 level again, it is likely that a bit of “market memory” will come into play and therefore people will be looking to get involved. The $52.50 level is the initial target, followed by the $55 level. I like the idea of buying dips and I do not have any interest in shorting this market, not to mention the fact that longer-term traders will be paying attention to that “golden cross” underneath that attracts a lot of attention. All things being equal, I think that the market continues to go higher but given enough time it is possible that we will find a reason to go higher, namely stimulus or a falling US dollar, or combination of both.

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