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Crude Oil Price Forecast – Crude Oil Markets Shoot Higher

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WTI Crude Oil

The West Texas Intermediate Crude Oil markets have rallied rather significantly during the trading session on Tuesday, showing signs of strength again. Quite frankly, this is a market that I think probably continues to go higher but may get the occasional short-term pullback in order to build up the necessary momentum. We have clearly made a nice bottoming pattern, and the fact that the omicron variant is at the end of the world, perhaps the reaction that we had recently was a bit overdone. Ultimately, I think this remains a “buy on the dips” type of situation, especially as the 200 day EMA sits at $69.17.

Crude Oil Video 08.12.21

Brent

Brent markets have rallied significantly as well, reaching all the way to the $76.10 level. At this point, it looks like Brent is about to continue rallying, perhaps reaching towards the $80 level. Short-term pullbacks at this point in time should continue to find plenty of support, especially near the 200 day EMA. The 200 day EMA currently sits at the $71.78 level, and of course will be paid close attention to by technical traders.

Ultimately, the market is likely to continue seeing buying pressure on these dips, due to the fact that demand for crude oil will continue to pick up. Furthermore, we also have to keep in mind that the market is trying to price in the recovery, which obviously will demand more energy. As far selling is concerned, I do not necessarily have any interest in doing so anytime soon. The market breaking above the $76 level would be a very strong sign as well, opening up the possibility of a much bigger move.

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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