Crude Oil Price Forecast – Crude Oil Markets Take a Breather

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gapped higher to kick off the trading session, only to chop back and forth as we continue to meander just below the $75 level. Granted, we will get some inventory numbers over the next 24 hours, but at the end of the day it might simply be the market trying to catch its breath after such a big move. With that in mind, it makes quite a bit of sense that we would continue to see sideways action in the short term, and then look at the eventual breaking above $75 as a very strong sign.

Crude Oil Video 01.07.21

Brent

Brent markets also have been somewhat choppy during the trading session, as we are hanging about the $75 level as well. At this point, Brent is more likely than not to continue going higher, but we may need to kill a little bit of time in the short term. If we get that bounce, I think that we will go looking towards the $77.50 level, and then eventually the $80 level which is my longer-term target. If we do break down a little bit, the 50 day EMA sits just below and could offer a bit of support, especially as it is sitting just above the $70 handle. All things being equal, this is a market that is in an uptrend and there is no reason to fight what is going on. With that being the case, I like the idea of looking at dips as a potential buying opportunity in a market that is clearly a very strong overall, as the economy around the world continues to reopen.

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