Crude Oil Price Forecast – Crude Oil Continues to Recover

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market rallied a bit during the early hours on Thursday as we continue to see a little bit of a recovery, and this does make a certain amount of sense because quite frankly, there’s a hurricane in the Gulf of Mexico and that is going to affect production. Furthermore, it was a little oversold as suddenly we saw a 4% drop earlier in the week out of the blue. So, I think at this point we are going to continue to see short-term pullbacks be bought into.

From a technical analysis perspective, I look at the $71.50 level as a potential support level due to the fact that it has been both support and resistance in the past. In general, I have no interest in shorting this market and I recognize that it is going to be noisy, but I think the buyers are most certainly going to be more aggressive than the sellers.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same as we are dancing around the highs of the previous session, and I think at this point short-term pullbacks will continue to find that people will be more than willing to join in. The $75.50 level underneath is an area that we have seen resistance and support add both directions.

And I think ultimately, the market memory, in general, is going to continue to be a major factor here. I think that Brent markets could very easily get back to the $80 level, but it may take some time to get there. The recent pullback that we have seen in both Brent and WTI, although brutal, when you look at it from the perspective of the recent rally, it’s pretty normal ebb and flows of market participants.

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