Crude Oil Price Forecast – Crude Oil Markets Rally Towards Jobs Report

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied again during the course of the trading session to break above the $75 level but has given back just a little bit of the gains. OPEC has announced that they are going to increase output by only 400,000 barrels, which is lower than originally anticipated. Furthermore, this is a market that I think will continue to see a lot of demand later this year, so I think traders are trying to get in front of that and take advantage of any possible dips and value. With this being the case, I have no interest in shorting and I think that the $70 level will now offer your “floor the market.”

Crude Oil Video 02.07.21

Brent

Brent markets have initially rallied as well but have given back just a bit of the gains. The market is comfortably above the $75 level, so it does make a certain amount of sense that we would see buyers on any dip that happens in this market as well. We are clearly in an uptrend, and it looks as if we are going to go looking towards the $80 level given enough time. I have no interest in shorting this market, as demand for crude oil should continue to be very strong going into the end of the year. To the downside, the 50 day EMA should continue to be important, so therefore I think we are more than likely going to see plenty of buyers underneath that particular area as well. Ultimately, I think we go looking to at least the $80 level, if not even higher.

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