Crude Oil Price Forecast – Crude Oil Pullback on Monday

WTI Crude Oil

The West Texas Intermediate Crude Oil market has pulled back just a bit during the trading session on Monday, but already is starting to see signs of people willing to step in and try to pick it back up. That being said, the market is likely to continue to see a lot of interest on dips, as the “reflation trade” continues to be a major driver of markets. That being said though, I do think that the markets will eventually find some type of reason to go higher, whether or not there is real demand. At this point, one of the things that traders are paying attention to is the fact that production of crude oil is still slated to slow down in the future. I believe that short-lived though.

Crude Oil Video 12.01.21

Brent

Brent markets have pulled back just a bit as well, reaching towards the $55 level to find buyers again. Ultimately, I think this is a sign that we continue to find buyers underneath, and I think that it is only a matter of time before we see continued bullish pressure. A little bit of a pullback at this point does make quite a bit of sense though because we have gotten a little bit parabolic over the last four sessions or so. Underneath, I believe the $50 level is an area of significant support, followed by the 50 day EMA which is rapidly approaching that level. To the upside, we could go as high as $60, but I think it is going to be very difficult and choppy on the way there.

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