Crude Oil Price Forecast – Crude Oil Markets Continue to Test Recent Highs

WTI Crude Oil

The West Texas Intermediate Crude Oil market has pulled back a bit during the course of the trading session on Monday from the $75 level. This is a market that continues to be threatened by a couple of different things, not the least of which will be the uncertainty around OPEC+ and all of the noise with that situation as far as coming together with some type of output quota. Furthermore, at the same time we have to worry about the global economy slowing down due to the Delta variant and threats of lockdowns in various economies yet again. With that being said, the $70 level underneath should be supportive.

Crude Oil Video 13.07.21

Brent

Brent markets also have pulled back a bit to dance around the $75 level, and of course the 50 day EMA underneath continues offer support, so we are still in a “buy on the dip” situation. If we were to break down below the 50 day EMA, then it is very likely that the $70 level underneath will offer a significant amount of support as it was previous resistance, and it is of course a large, round, psychologically significant figure. Because of this, the market is likely to continue to see noisy behavior overall, as we will be moving back and forth from the “risk on/risk off” attitude that traders are currently dealing with. With so much uncertainty, it is very likely that we will continue to see choppy behavior more than anything else. The meantime, the most important thing you can do is keep your position size rather small as oil markets are volatile at the moment.

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