Crude Oil Price Forecast – Crude Oil Pulls Back Into The Weekend

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially rally during the trading session on Friday but then pulled back a bit to show signs of exhaustion. Ultimately, this is a market that has plenty of support underneath though, and I think that it is only a matter of time before we see buyers jump back into this market. With the US dollar losing strength on a daily basis, that will continue to drive the value of crude oil up higher as well. Looking at the chart, I think it is very likely that we go looking towards the $50 level eventually, but that does not suggest that we are going to get there overnight. I think that we are simply looking at a scenario where you buy the pullbacks for short bursts.

Crude Oil Video 07.12.20

Brent

Brent markets of course look very much the same as OPEC has finally gotten out of the way, deciding on the cuts. The 50 day EMA is starting to cross above the 200 day EMA and of course the $50 level is an area where you will see a bit of profit-taking reference to buy the candlestick. If we can break above the $50 level, then we are likely to go looking towards the $52.50 level, and possibly even the $55 level. At the $47 level underneath, I think there will be plenty of support based upon the previous break out point offering a bit of “market memory.” I have no interest in shorting, at least not right now but I recognize that the upside is probably somewhat limited from the longer-term standpoint.

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