Crude Oil Price Forecast – Crude Oil Markets Run Into Headwinds
Crude oil markets have gone back and forth during the trading session on Wednesday, as perhaps we may have gotten a bit ahead of ourselves in the short term.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has shown itself to be a bit overextended during the trading session on Wednesday, as markets do not quite know what to do with the inventory numbers. There was a bit of a drop, but demand is not what people were hoping. At this point, I think that the technical analysis suggests that we will eventually get to the $55 level, but one has to think that we are getting close to some type of major resistance that screams for a pullback. To the downside, the $50 level could be targeted, but only if we get some type of momentum.
Crude Oil Video 14.01.21
Brent
Brent markets also look a bit tired at this point, with perhaps a pullback coming in the short term. We are bit extended and if there is going to be a lack of demand, supply needs to be cut drastically to make up for that. The only thing that really could help is perhaps a shrinking US dollar, which has been a mainstay of the market for a while. I think that given enough time we will probably see an attempt towards the $60 level, but it should be noted that we are definitely far into the uptrend at this point. It really does not matter at this point about stimulus other than for a short-term trade, because quite frankly if there is not demand, that will eventually cause major problems. Ultimately, I believe that the $50 level is the absolute “floor the market” at this point, and I think that the easy money has already been made in this market.
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