Crude Oil Price Forecast – Oil Bounces After Rumored OPEC Progress

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially pulled back a bit during the trading session on Wednesday but has rallied despite the fact that there has been less than stellar gasoline builds in the United States. This is because there are rumors flying around that OPEC is making a certain amount of progress in the talks when it comes to production cuts. If that is going to be the case, then it is likely that this market could continue to go higher. All things being equal, the market continues to find buyers underneath and I do believe that we will try to make a move towards the $50 level.

Crude Oil Video 03.12.20

Brent

Brent markets have rallied quite significantly during the trading session as well, as the $47.50 level has offered support, as it was previous resistance. Ultimately, this is a market that should continue to go looking towards the $50 level. The $50 level is of course a large, round, psychologically significant figure, but I think that we probably have more strength going higher and above that level. All things being equal, I think that it is obvious that the “reflation trade” is in fact in full effect, and that should continue to drive oil prices higher. Over the next couple of days, we could see a little bit of volatility, but longer-term I do believe that people will be buying regardless. The 50 day EMA is getting ready to cross above the 200 day EMA, which longer-term traders will be paying attention to.

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