Crude Oil Price Forecast – Crude Oil Markets Looking Ready for Break Out

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied a bit during the course of the trading session on Friday to pierce the 50 day EMA but has not been able to hang onto that move for an extended run. This is probably due to the fact that it was Friday, and at this point time it looks as if the market will continue to favor the oil markets going higher, as we have seen so much in the way of upward pressure. Quite frankly, Jerome Powell did suggest that tapering could come later this year, but he also made it clear that interest rate hikes are nowhere near ready to happen, and therefore I think the market basically celebrated by selling the US dollar.

Crude Oil Video 30.08.21

Brent

Brent markets also rallied as well, but unlike the WTI market managed to break above the 50 day EMA and stay above there. Now that we have done that, it looks as if Brent will probably lead the way for WTI to continue going higher, and therefore I think we more than likely are getting ready for a bigger breakout. If we can break above the $72.50 level, this is a market that should then go looking towards the $75 level, given enough time. Pullbacks will continue to be bought into and it looks as if the $70 level will continue to be support. Pay close attention to the US dollar, because if for some reason were to turn around and show signs of strength, that could be bad for oil, but right now that does not look to be the case.

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