Crude Oil Price Forecast – oil bounces to kick off week

WTI Crude Oil

The WTI Crude Oil market bounced a bit during the trading session on Monday, as the $50 level has offered enough support to have people jumping into the market. The $50 is of course a psychologically important figure, and I think that the market is bouncing from and oversold condition, but quite frankly I think that the market bouncing will probably be an opportunity to short yet again. However, if we break above the $57.50 level, then we could possibly go even higher. If the $60 level was to get broken, then we could get serious momentum to the upside.

Brent

I believe that Brent markets also looking to bounce a bit from and oversold position, but then should find exhaustion that we could take advantage of to short yet again. However, one thing that you should pay attention to is whether or not the Saudi Arabia and Russian government start to cut back on production. The way the oil markets have collapsed, one would think that we should hear that sooner rather than later, but at this point we don’t have any type of signs that it’s ready to happen yet, so in the meantime I think you continue to fade rallies that show signs of exhaustion. However, as soon as ministers start to talk about cutbacks, I think this market will take off. Alternately though, if we can get the US dollar to soften a bit, that could also give the crude oil market a little bit of a boost.