Crude Oil Price Forecast – Crude Oil Markets Rally Again

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied a bit during the trading session on Wednesday to reach towards the beginning of the gap. The gap extends all the way to the $41 level, so it is very likely that we can see signs of exhaustion above that are sold into. Ultimately, this is a market that is going to have to pay attention to whether or not there is any real demand. We have seen a massive amount of volatility in this market and not to say the massive amount of bullish pressure. Ultimately though, one would have to believe that the economy is going back to normal for crude oil to continue going higher over the longer term.

Crude Oil Video 21.05.20

Brent

Brent markets have rallied a bit during the trading session as well, reaching towards the $36 level. I believe that there is a massive amount of resistance closer to the $40 level, but we are probably going to grind higher to reach towards that area. A move above the $40 level then opens up the possibility of a gap to be filled, extending all the way to the $45 region. Signs of exhaustion should continue to see sellers coming into this market, but in the short term if you are so inclined, you can make an argument for placing small trades to the upside. Ultimately, crude oil will continue to be a major focus on the economy, but at this point it looks as if it is somewhat divorced from reality. This is not something that you can quantify, it is just something that seems to be a bit obvious.