Crude Oil Price Forecast – Crude Oil Continues to See Buyers

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market initially pulled back just a bit during the trading session on Tuesday, but it looks like we are going to continue to see traders try to support this market. We are very low in the overall range that we have been in for the last couple of years. The $67.50 level is an area that I think a lot of people pay attention to. Just as the $71.50 level above is a target. Given enough time, it’s likely that traders will try to get to that $71.50 level and perhaps even above there.

All things being equal, this is a market that I think will be very noisy due to the fact that there are a lot of geopolitical concerns. There are a lot of concerns about whether or not there is going to be enough demand from the global economy. But on the other hand, inventory has been rather low in multiple places around the world. So that does help crude oil. I think we will continue to build a base and try to rally.

Brent Crude Oil Technical Analysis

The Brent market is very much in the same situation as you would anticipate with the $72.50 level offering resistance. If we can break above the $73.50 level, then it’s likely that we could really start to take off to the upside. On the other hand, if we were to turn around and break down from here, the market is likely to continue to look at the $71 level as support, as well as the $70 level.

In general, this is a market that I think also is trying to build its base for a recovery. So, I like buying dips, but I also recognize that the volatility in both grades of oil means that you need to be small with your position size.

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