Crude Oil Weekly Price Forecast – Crude Oil Markets Continue to Squeeze Higher

WTI Crude Oil

Crude oil markets initially pulled back during the trading week in both grades, as the WTI is finding massive resistance in the form of the $41 level. We are at the top of the gap that had sent this market so much lower, and now it looks like we are simply trying to squeeze to the upside. Granted, it is taking quite a bit of time to get to the upside but consolidating a bit in this area makes sense after the huge move we had from the bottom. The question now becomes whether or not there is going to be enough demand to justify or higher prices? All things being equal, if we can break above the $42 level, I think at that point we will go looking towards the $49 level. Otherwise, anticipate support in the neighborhood of $35 underneath.

WTI Oil Video 20.07.20

Brent

Brent markets also initially fell during the trading week but turned around to show signs of life again. By doing so, the market has been somewhat choppy, but I think because we are in the middle of the overall gap, it does make sense that we would see a lot of noise in this area. I still think we fill the gap above, but we need some type of catalyst to drive price there. If we can break above there, then a $50 target could come into play. I still see quite a bit of support underneath at the $40 level in the Brent grade, as we simply kill time after an explosive move higher.

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