Crude Oil Weekly Price Forecast – Crude Oil Markets Walk Trendline

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially pulled back during the course of the week but then rallied again to show signs of resiliency. The $60 level looks to be supportive and of course we have a significant amount of support based upon that longer-term trendline. Now that it looks like the US adding 916,000 jobs for the month of March will give traders the idea of more demand coming into the picture, despite the fact that the European Union still is suffering at the hands of lockdowns. That might keep the upward momentum dampened a bit, but it still looks bullish at this point.

WTI Oil Video 05.04.21

Brent

Brent markets have also pulled back to the uptrend line and then turned around to form a hammer. I would say it is the same story over here, we are looking at the possibility of more demand coming out of America, which then means more demand coming out of various other countries that import to America. Yes, Europe is still a problem, but it looks to me like the market is going to try to get back to the $70 level given enough time so therefore I am more apt to believe that we go higher rather than lower, but I also recognize that it is going to be very choppy and noisy all the way up. If we were to turn around a break down below the $60 level, then I think you have a scenario where markets break down rather significantly. Until then, you have to assume the uptrend is still intact.

For a look at all of today’s economic events, check out our economic calendar.