Crude Oil Price Forecast – Crude Oil Hesitates After Big Move

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market has fallen a bit during the early hours on Thursday as we are trying to sort out whether or not we are going to pull back and find buyers or if we have peaked again. I suspect at this point in time, there are buyers underneath because the cyclical nature of this market is that we should see plenty of strength through the summer. Furthermore, we have a lot of geopolitical conditions that warrant concern about supply. So, at this point in time, I do think this ends up being a buying opportunity. The $80 level of course has offered significant support. So that is something worth paying attention to.

Brent Crude Oil Technical Analysis

The Brent market fell to the $84 level in the early hours as it is trying to hang on to it. This was an area that’s been important multiple times, so we’ll have to see whether or not it holds. If it turns around and takes out the $85 level, then I think both grades of oil probably go higher. A drop from here could open up and move down to $83, where we had seen support previously.

Keep in mind both of these markets tend to feed off of each other so if one starts rallying, it will drag the other one up with it. Pay attention to the US dollar that probably has some say as well as the dollar strengthening drastically can sometimes, not always, but sometimes hurt crude oil. Either way expect volatility, but I don’t really have any interest in shorting at this point in the year.

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