Crude Oil Price Forecast – Crude Oil Shows Support on Friday

WTI Crude Oil Technical Analysis

Here in the West Texas Intermediate Market, you can see that we have bounced from the $80 level, which is something that you would expect due to the fact that the market has respected this big figure, this market memory, this area that I think a lot of traders have been paying attention to.

Furthermore, we have the bullish Golden Cross getting ready to happen, so the technical analysis lines up for a positive market. I have no interest in shorting oil anyway. It is a cyclical trading commodity, and the driving and flying season is about to start picking up again. Furthermore, there are concerns about supply as the Americans have emptied their strategic petroleum reserves.

Brent Crude Oil Technical Analysis

Over in the Brent market, it’s very much the same situation. We are bouncing from the $84.50 level, an area that I think a lot of people will be paying attention to as well. Much like in the WTI grade, we are about to get the Golden Cross in the Brent market as well. So, I think it all ties together quite nicely. The geopolitical concerns in the Middle East, of course, have an influence on oil. And if the US dollar starts to shrink a bit, that also will drive prices up.

Longer term, I think that both of these markets are likely to pick up about $5 a barrel over the next several months, although I don’t necessarily expect some type of melt up. Central banks loosening monetary policy will spur demand as well, so it all ties together quite nicely. I have no interest in selling oil at all.

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