Crude Oil Weekly Price Forecast – Crude Oil Markets Continue HigherThe crude oil markets initially pulled back during the course of the week but then turned around to show signs of strength yet again.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has initially pulled back during the course of the week to reach down towards the $60 level before rallying significantly. By turning around a break above the $65 level, it suggests that we are going to go much higher, perhaps reaching towards the $70 level, maybe even the $75 level. This was predicated upon the noise on Friday that Goldman Sachs came out and suggested that crude oil is going to go all the way to the $80 level. Having said that, we are overstretched and the pullback in this market is going to be somewhat catastrophic. Depending on your timeframe, you may or may not have an opportunity to get long of the market on short-term charts, but if you are more of a longer-term trader, you are looking for signs of exhaustion to fade. Quite frankly, this is a market that has gotten way ahead of itself as we had a serious lack of demand before the virus.
WTI Oil Video 08.03.21
Brent markets are also in the same boat, as we are reaching towards significant resistance in the form of the $70 level. If we can break above there, then it is likely that we could go looking towards the $75 level. In general, this is a market that I think short-term traders will be buyers on dips, but we are sooner or later going to start paying attention to the supply numbers, which are going to overwhelm the demand in the sense that we are far too expensive at this point. Yes, oil demand should pick up, but we have jumped 75% in just two months.
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