Crude Oil Price Forecast – Crude Oil Markets Showing Exhaustion AgainCrude oil markets have went back and forth on Tuesday, as we are starting to see significant cracks in the ice of the uptrend showing up.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has gone back and forth during the course of the trading session on Tuesday, to reach towards the $63 level before pulling back. The candlestick does look as if it is a sign of exhaustion coming into a market that is far too overexposed, and at this point I think that is probably the main thing to pay attention to. I think a short-term pullback makes quite a bit of sense, but that does not necessarily mean that we are ready to break apart. I anticipate that the market will find plenty of support down to the $59 level. In other words, I would look for some sideways action in the short term.
Crude Oil Video 24.02.21
Brent markets also have struggled a bit above the $65 level, and it is worth noting that we had broken slightly above the top of the shooting star from the previous week but have given back quite a bit of the gains. That being said, this is a sign that the market is really close to perhaps a more significant pullback. I do not necessarily think that we are going to collapse anytime soon, but certainly a pullback would be healthy as the market had gone straight up in the air for far too long. Furthermore, it is worth noting that the Texas refineries are starting to come back online, which of course will bring in over 40% of US oil production back in with it. In other words, supply in this market should dampen some of the enthusiasm.
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