Crude Oil Price Forecast – Oil Continues to Move on OPEC CommentsCrude oil markets are waiting what OPEC will do about production as a major meeting is going on to decide whether or not the production cuts will be continued.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has rallied a bit during the trading session on Thursday as we await a final decision as to whether or not the supply cuts will extend into the month of April. There are multiple reports that Azerbaijan, Equatorial Guinea, and a few other countries have expressed desire to extend the output cuts, but at the same time Russia is reported to be pushing back as they wish to release more supply. At this point, it is probably best to look at this as a range bound market between $65 on the top, and $59 on the bottom. Once we break out of that range, then we could give a little bit more credence to the move, but at this point time we are looking at a scenario where we probably are going to simply chop back and forth on the latest rumor. Furthermore, we also have the jobs number coming out that could cause some issues as well.
Crude Oil Video 05.03.21
Brent markets are very much in the same scenario, as we are looking at resistance near the $67.50 level, but I think the “ceiling in the market” is probably closer to the $70 level. At this point, it is obvious that the market is moving on the latest rumor and/or speculation of intent, so it is a bit difficult to put any real money to work. Furthermore, the jobs number will have a major influence on liquidity as well, so quite frankly we should be looking at this as a market that is likely to go back and forth rather violently at times and should be looked at as a range bound market that you should be playing with small positions at best.
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