Crude Oil Price Forecast – Crude Oil Markets Choppy

WTI Crude Oil

The West Texas Intermediate Crude Oil market has been all over the place during the trading session on Wednesday, hanging about in a relatively tight range. That being said it is likely that the market is behaving the way it is as traders are speculating on what the FOMC will say. Quite frankly if they disappoint it is likely that oil could be a victim. When you look at the weekly chart, there are a couple of shooting star so that is something to take into account, but this also means that we break to a fresh, new high could be an extraordinarily bullish sign. The meantime, I assume we go sideways more than anything else.

Brent

Brent of course is behaving very much the same way with the $55 level underneath offering support. The market also will be paying attention to the 50 day EMA underneath at $51.50, and the $50 level of course. To the upside, the $60 level looks to be rather resistive, but it will make a good target if we do in fact break out to the upside. Ultimately, I do think that this is a market that probably needs to be the pullback or kill time as it has gotten far ahead of itself. This is all about the so-called “reflation trade” and central banks around the world trying to open everything back up through monetary policy and the idea that economies go back to normal once the vaccine rolls out. I do not believe this for an instant, but that is the narrative going forward currently. Demand was falling off before the pandemic it so there will probably be a quick sugar rush, and then worries about reality.