Crude Oil Price Forecast – Crude Oil Markets Continue Noisy Behavior

WTI Crude Oil

The West Texas Intermediate Crude Oil market has been all over the place during the trading session on Monday as we continue to see conflicting headlines cause major issues. For example, the tanker in the Suez Canal has finally been moved, but at this point in time there are also reports that perhaps the Russians might push to extend production cuts into the month of April. In other words, this is a market that has a lot to digest. From a technical analysis standpoint, we are going sideways after a trendline break and also have a flat 50 day EMA around a large psychologically important figure. In other words, confusion reigns.

Crude Oil Video 30.03.21

Brent

Brent markets are very much the same, hanging around the $65 level and the 50 day EMA. We are essentially trading sideways in a five dollar range, and as a result I think you are probably looking at short-term trading more than anything else. The candlestick shows perfect confusion, so that is reason enough to think that there really is no deciding set up here at the moment, but if we were to break down below the $60 level we could drop rather significantly. On the other end, if we break above the $65 level, then we could have another attempt at the $70 level but right now I think things are far too erratic to put a decent sized position on. You need to be looking at this more or less from a range bound and short-term perspective with this type of behavior. Sooner or later, the inertia will break and then we will have a bigger move. Until then, you will need to be very cautious.

For a look at all of today’s economic events, check out our economic calendar.