Crude Oil Price Forecast – Crude Oil Markets Stall

WTI Crude Oil

The West Texas Intermediate Crude Oil market has shown itself to be a bit tired during the trading session on Wednesday, which should not be a huge surprise considering we have gone straight up or most of the week. The $73 level continues to be a bit of a headache, so at this point in time I think what we have is a scenario where we need to pullback in order to build up momentum. If we do find buyers underneath, I believe it more than likely will be near the $70 level. On the other hand, we may just turn around and break out, which if we do then I believe that the market goes looking towards the $75 level.

Crude Oil Video 09.12.21

Brent

Brent markets of course are behaving very much the same, as they had been so bullish for a couple of days. That being said, if the 200 day EMA sits near $72, which I think will offer a nice support level for this market if we do get a pullback. On the other hand, we can take out the $76 level, then it is very likely that we will go looking towards $80 over the next several sessions. I do believe that crude oil is going to recover quite nicely, due to the fact that the omicron variant has not been the disaster the people made it out to be. Because of this, I think that the overreaction is done, and we will continue to see the general grind higher in a market that desperately needed a pullback to begin with. Because of this, I think there is no real argument for shorting anytime soon.

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