Crude Oil Price Forecast – Crude Oil Continues Bullish Momentum

WTI Crude Oil

The West Texas Intermediate Crude Oil market rallied slightly during the trading session even as we got rather bearish numbers coming out of the inventory figures. That being said, the market is probably moving on the idea of a postvaccine world more than anything else right now. Whether or not that is something that is sensible is a completely different question, but at this point in time it seems to be what we are doing. Short-term pullback should continue to find support near the $43.50 level, an area that was previous resistance. Ultimately, I do think that we go looking towards the $50 level before rolling back over.

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Brent

Brent markets rallied a bit during the trading session on Wednesday, reaching towards the $50 level. That psychological figure will of course have an influence on the way the market behaves, but at this point in time I think it is only a matter of time before we try to break through. This is of course all about the vaccine and the reflation trade, but at the end of the day it is very unlikely that demand will strip supply anytime soon as seen in the inventory figures. The short term it looks bullish but given enough time I do think that we pullback. For what it is worth, the “golden cross” is currently happening and therefore some longer-term traders may be willing to buy but at this point I think we have very rocky conditions ahead of us.

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