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Crude Oil Price Forecast – Crude Oil Markets Recover on Tuesday

By:
Christopher Lewis
Published: Jun 29, 2021, 15:02 UTC

Crude oil markets recovered a bit during the trading session on Tuesday after the massive selloff on Monday. Quite frankly, the trend is still very much intact so this should not be a huge surprise.

Brent WTI crude oil

In this article:

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially pulled back a bit during the trading session on Tuesday, as we have seen a little bit of resilience in a market that had such a rough trading session on Monday. That being said, I think it is only a matter of time before this market goes looking towards the $75 level again, which is a large, round, psychologically significant figure and of course will attract a lot of headline attention, and therefore I think a lot of resistance. If we can break above the $75 level, then it is likely that we will continue to grind higher, perhaps filling the “measured move” of the ascending triangle underneath to reach $77.50.

Crude Oil Video 30.06.21

Brent

Brent markets also rallied a bit after initially falling on Tuesday, as we continue to grind higher. The $75 level has offered support over here, so therefore it makes sense that we will more than likely continue to go towards the psychologically and structurally important $80 level. The $80 level is the measured move from the ascending triangle underneath, and quite frankly most pundits believe that Brent is going much higher than that. As economies around the world continue to reopen, demand for crude oil will skyrocket and therefore continue to drive the price of petroleum higher.

There is probably going to be a sharp increase in price due to the fact that the supply of crude oil has been worked through that was a major issue as we had formed a glut of supply due to the lack of demand during the pandemic. That glut has been worked through, so now supplies need to be built back up.

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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