Crude Oil Price Forecast – Crude Oil Markets Break Out

WTI Crude Oil

The West Texas Intermediate Crude Oil market has broken higher during the trading session, clearing the $70 level finally. If you remember, this is the area that I have been talking about over the last several days, as it is a major barrier. Now that we are above there, it is very likely that the WTI market goes higher, perhaps reaching towards the $74 level. Pullbacks at this point should continue to see plenty of support, especially near the 50 day EMA which is currently sitting just below the $69 level. A lot of this is probably due to a lack of production in the Gulf of Mexico area, but also the reopening trade.

Crude Oil Video 03.09.21

Brent

Brent markets have broken higher during the course of the trading session on Thursday to break not only the $73 level, but also a downtrend line that I have marked on the chart. At this juncture, it looks like Brent could go looking towards the $75 level. That of course would attract a certain amount of attention, but ultimately I think it is a scenario where we are going to continue to see a lot of people trying to play the reopening trade, especially if the central banks continue to be as loose with monetary policy as they claim they are going to be. Furthermore, the slowdown in production from Gulf of Mexico refineries will probably have certain refineries diverting supply. All things been equal, this is a market that certainly looks as if it wants to go higher, and the session on Thursday will have suggested that we have further to go. At this point, I do not see a situation where you could be a seller.

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