Crude Oil Price Forecast – Crude Oil Markets Recover After Initial Selloff

WTI Crude Oil

West Texas Intermediate continues to be very bullish, even though we did sell off early in the day. That being the case, the market is very likely to continue to see a “buy on the dips” type of mentality, something that unfortunately will fake a lot of people out to the downside. That being said, the market looks very likely to try to break out of this “double top area” and go racing towards the $80 level.

If we do break down below the lows of the trading session on Thursday, that could open up a move down to the 50 day EMA, which is also backed up by the $70 level, an area that will attract a lot of attention. Either way, you should be looking for buying opportunities.

Crude Oil Video 01.10.21

Brent

Brent markets have pulled back a bit during the trading session on Thursday to show signs of weakness, but at this point in time it is obvious that crude oil continues to be attractive for market participants around the world, and that we are going to continue to see a bit of a squeeze to the upside due to the overall demand picking up at a time where production had been stifled for so long. Granted, eventually shale producers will come into the picture and increase production, but right now it appears that we are still going to struggle with supply as the European Union can certainly attest to. It will be interesting to see how this plays out, because I also think that a lot of the crude oil demand and glut will be very “lumpy” globally.

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