Crude Oil Price Forecast – Crude Oil Markets Sluggish to Kickoff Week

WTI Crude Oil

The West Texas Intermediate Crude Oil market has done very little during the trading session on Monday, as we continue to debate whether or not we can break through the $65 level. Based upon Monday’s price action, I do not think it is going to happen in the short term, and I believe at this point more sellers are starting to step in, or at least people willing to take profit. The candle itself was rather uninspiring, and I think that a pullback towards the $60 level seems more likely than not over the next couple of days. If I were to take advantage of that set up though, I would wait for short-term rallies to sell into. If we were to break above the $65 level though, that could send this market much higher.

Crude Oil Video 02.03.21

Brent

Brent markets initially tried to rally during the trading session on Monday but gave back the gains above the $65 level. At this point, the market looks likely to see a bit of exhaustion coming back into the market given enough time, and I think that short-term rallies are probably not to be trusted quite yet. I believe that the major resistance level is at the $70 level, and it is possible that we could see an attempt to get there, but I believe that the massive amount of supply at the $70 level based upon monthly charts will continue to be a major issue. All things been equal, this is a market that is in desperate need of a pullback, and the recent action does suggest that we are running out of momentum.

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