Crude Oil Price Forecast – Crude Oil Rallies a Bit on Friday

WTI Crude Oil

The West Texas Crude Oil Market rallied a little bit during the trading session on Friday in the early hours, as it looks like we are ready to go looking to try to get to the $72.50 level. The $72.50 level has been an important barrier more than once, so I am watching it very closely. If we could break above there, that will release crude oil to go much higher in the WTI grade. However, signs of exhaustion simply would mean that we are still stuck in the same consolidation and probably will be for a while.

Brent Crude Oil

Brent markets are rallying as well, and they are above the 50 day EMA, so that’s a bullish sign. If we can continue to go higher, then I think you’ve got a situation where the market goes looking to the $76 level. Again though, I think there is real possible exhaustion just above, and that would just cause a pullback in this same consolidation area. This is a market that has been very noisy for a while with the $70 level underneath being a massive support level.

I do think that support level will probably continue to hold. The question is, can we get enough momentum to go higher? It’s very likely that demand for crude oil in places like the United States will pick up and central banks cutting rates around the world will almost certainly cause the same effect eventually. The question of course is, when is that? So, with all of that being said, you have to be patient, but you have to recognize that crude oil is trying to do what it can to build up the necessary inertia to go higher.

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