Crude Oil Price Forecast – Crude Oil Markets Have Another Bumpy Day

Christopher Lewis
2 min read
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WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially tried to rally a bit during the trading session on Thursday but gave back the gains to show a bit of an exhaustive candlesticks. With that being the case, it is likely that we will continue to see noisy behavior in a market that is trying to figure out what to do going forward as OPEC cuts may not be enough to overcome the lack of demand. Furthermore, there are coronavirus lockdowns around the world that will obviously have an effect on the market also. We have broken the $50 level, which is a bullish sign, but I think it is only a matter of time before we turn around. In the short term, if we can break above the top of the shooting star it is likely that the market could go looking towards the $52.50 level.

Crude Oil Video 08.01.21

Brent

Brent markets also try to rally during the trading session and even touch the $55 level. It has pulled back from there though, so it looks like we are going to see a bit of back-and-forth in the short term. If we do break back down below the $53.25 level, we could go looking towards the $51 level, but longer-term I think that this market needs to make decisions based upon demand. Demand seems to be a little bit skewed at the moment, and people are starting to wonder whether or not the coronavirus lockdowns will outweigh the production cuts that OPEC chooses to do? I think at this point, we are in an area where we might be looking at a little bit of equilibrium.

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

This article was originally posted on FX Empire

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