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Crude Oil Price Forecast – Crude Oil Markets Ready to Break Out

By:
Christopher Lewis
Published: May 12, 2021, 16:01 UTC

The crude oil market has rallied a bit during the course of the trading session on Wednesday as it looks like we are trying to break out of the descending triangle formations that are forming in both markets.

Crude Oil WTI Brent

In this article:

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially pulled back a bit, only to turn around and show signs of strength again. At this point in time, the market is likely to break out and go much higher, perhaps reaching towards the $70 level eventually. There is a lot of noise in general, but the “reopening trade” continues to be a major theme that a lot of traders are playing into, and of course that means more demand for crude oil. Furthermore, OPEC and British Petroleum both have suggested that there should be more demand coming and therefore it should continue to push prices higher given enough time. And beyond that, the US dollar falling will continue to be a bit of a tailwind for this market.

Crude Oil Video 13.05.21

Brent

Brent markets have broken higher as well, and it looks like we are going to go looking towards the $70 level. If we can break above the $70 level, then it is likely that we could go looking towards the $72.50 level. The ascending triangle is still intact, but you could even make this a bit of an ascending triangle that we could pay close attention to as well. Either way, I do not have any scenario in which I am willing to sell anytime soon, so I think what we are looking at is a scenario where buying on the dips should continue to be the way going forward. With this in mind, I think there should be more value hunters out there than anything else.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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