Crude Oil Price Forecast – crude oil markets take off on MondayCrude oil markets rallied significantly during the day on Monday, breaking above the vital levels as the Iranian sanctions are looming. With a titer oil supply, it makes sense that perhaps we continue to grind even higher.
WTI Crude Oil
The WTI Crude Oil market rallied rather significantly during the trading session on Monday, the kick off the week with a very strong move. It looks as if the market is going to continue to reach towards the $75 level above, and I think that’s only a matter of time. Beyond that, I think that we will eventually break above $75 and even reach towards the $80. However, we do need to see the occasional pullback to take advantage of value. By doing so, we can go with the overall attitude of the market and pick up value occasionally. At this point, buying at these levels is simply “chasing the trade.”
Brent markets also rallied during the day, breaking above the $84 level, and looking very much like they are going to reach $85 in a very short amount of time. At this point, I think that the market will continue to find reasons to go higher, and I look at the $83 level as a bit of a “floor” now. Any pullback close to that area should invite fresh buying, just as a break above the $85 level should send this market even higher. There are a lot of pundits out there talking about $100 a barrel, I don’t know if we get there, but clearly that’s the direction we are heading if nothing else. If we were to turn around and break down below the support region at the $83 level, then I think we probably go down to the $82 level.