Crude Oil Price Forecast – Crude Oil Markets Whipsawed by Hurricane

WTI Crude Oil

The West Texas Intermediate Crude Oil market gapped higher to kick off the trading session on Monday, but then turned around to show signs of hesitation. This is due to the fact that a lot of traders will probably banking on the idea of crude oil refineries being damaged by the hurricane. It appears that the damage in the southeastern part of the United States is not going to be as extensive as the once feared, so therefore although oil is off-line at the moment, it will be coming back on in the next few days. With this, continue to pay attention to the $70 level, because that will certainly have a lot to say as well.

Crude Oil Video 31.08.21

Brent

Brent markets also have stalled a bit, for the same reasons but also because of OPEC is anticipated to increase production in the next few days, and that of course is a little bit of a headwind for the price of oil. The question now comes down to demand, and the daily candlestick suggests a bit of confusion. It looks as if we have plenty of support underneath all the way down to the $70 level, so as long as we can stay above there then I remain somewhat constructive of this market. On the other hand, if we turn around a break above the $75 level, that could open up the floodgates towards and $80 move.

I think that is less likely now that we have gotten hurricane out of the way and OPEC is more than likely going to make good on those production increases. With the world economy reopening, obviously there will be demand but it seems as if producers are not too keen on letting the price rise too much, else shale will start to become a factor again.

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