Crude Oil Price Forecast – Crude Oil Markets Show Signs of Strength

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied slightly during the trading session on Tuesday as traders await some type of deal coming out of the U.S. Congress as far as stimulus is concerned. Crude oil should continue to go higher due to the shrinking US dollar and of course the idea that stimulus would bring in more demand. Whether or not that is true is a completely different scenario, because after all they most recent inventory numbers suggested a 15 million barrels build. All things being equal though, it looks as if the market is trying to go towards the $50 level above. With that in mind, short-term pullbacks probably offer buying opportunities.

Crude Oil Video 16.12.20

Brent

Brent markets also rallied slightly during the trading session on Tuesday as well, as we are above the $50 level. At this point, Brent markets are likely to continue grinding to the upside, but the keyword here is probably going to be “grinding.” Short-term pullbacks should offer an opportunity to take advantage of value and joined the fray. That being said, I think it is only a matter of time before we would see some type of turnaround in the markets and start selling off as soon as we come back to reality when it comes to the lack of demand. Even stimulus will not fix anytime soon, because this will be the fourth stimulus package, and we still do not have significant demand. This will not change anytime soon, but in the short term it looks like traders are willing to take advantage of the momentum of the potential fallout.

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