Crude Oil Price Forecast – Crude Oil Continues to Look Strong

WTI Crude Oil Technical Analysis

The crude oil market in the West Texas Intermediate grade has pulled back ever so slightly in the early hours on Wednesday, but quite frankly, I think this is a market that is just settling down as we are heading into a holiday on Thursday in the United States in the form of Independence Day and of course we have a jobs number coming out on Friday, both of which that could cause quite a bit of volatility.

So with this being the case, I think you have a situation where if we do drop any significant amount of distance from here, buyers are going to be more than willing to step in and take advantage of cheap oil. Oil typically does fairly well this time of year, and as a result, I think there is a lot of seasonality coming into play. But I also recognize that this is a market that also has to keep an eye on geopolitics, both of which could end up being bullish for oil before it’s all said and done. Any pullback at this point in time for me, it looks like a buying opportunity. And I do think that we will eventually get to the $85 level.

Brent Crude Oil Technical Analysis

In the Brent market, it looks very much the same with perhaps the $85 level underneath being the massive support area. I do think that eventually buyers come in and start to pick this up again, perhaps trying to reach to the 87.50 level, but really this is a market that is going to be driven by the same things that the West Texas Intermediate market is driven by and that’s geopolitics and demand.

So, with all of that being said, I do believe that crude oil overall continues to strengthen, and I just don’t have any interest in trying to short the market. I do recognize Thursday is going to be very odd because the futures markets will be somewhat chopped up and then of course the Friday jobs number has a lot to say about potential demand as well. So, the next couple of days could be noisy but overall, I believe in the uptrend.

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