Crude Oil Weekly Price Forecast – Crude Oil Quiet Heading Into 2021

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gone back and forth during the previous week, as we continue to see the $50 level above offers significant resistance. Furthermore, the 200 week EMA is just above there, but at this point in time I think it is only a matter of time before we try to break that level and perhaps go higher. All things being equal, this is a market that continues to see a lot inflows, but there is a significant amount of resistance from early this year when we broke down from the Covid buyers. I think this is going to be a very noisy couple of weeks, and therefore you should probably be rather cautious about your position size. A pullback to the $44 level makes perfect sense though.

Brent

Brent markets were also quiet as we drift into 2021, but they also face a lot of resistance above. That being said, we probably have a little bit more movement to the upside just waiting to happen. All things being equal, this is a market that I think continues to see a lot of volatility in choppiness, I think as a result longer-term traders are probably going to struggle a bit. With this, keep an eye on the 50 week EMA underneath, because if we were to break down below there, it could tear this market apart. This all comes down to reflation, and the idea that the US dollar continues to fall.