Crude Oil Weekly Price Forecast – Crude Oil Has Supportive ToneThe crude oil markets initially dipped during the course of the week but as OPEC has finally come to a consensus, markets look as if they are stabilizing.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has pulled back initially during the course of the week but then turned around to show signs of life again. OPEC finally came to the decision with the rate of cuts, and now it seems as if traders are willing to bank on the move higher. Ultimately, I believe that we are going to go looking towards the $50 level above, and that short-term pullback should be thought of as potential buying opportunities. It is not necessarily mean that we are going to go there in a straight line though, so keep in mind that it could be a bit choppy. However, the worst of the volatility is probably behind us and now we can continue the move that started a month ago.
WTI Oil Video 07.12.20
Brent markets initially pulled back during the week as well but have found the $47 level to be supportive again. This was the scene of a breakout, so it makes sense that we retested it. Now that we have, I believe that this market is likely to go back towards the $50 level, followed by the $52.50 level, and then by the $55 level. I have no interest in shorting, at least not at the moment. I believe that the energy trade still has some legs and therefore buying on dips continues to be the mantra of most traders, as Brent looks like it has got further to go. The US dollar weakening of course also helps crude oil pricing as well, so with this being the case it is likely that the currency will continue to provide a tailwind.
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