Crude Oil Price Forecast – crude oil markets stable
WTI Crude Oil
The WTI Crude Oil market pulled back slightly during the day on Wednesday as we awaited the FOMC statement, perhaps due to the currency headwinds ahead of the meeting. Ultimately, I do think that the oil markets will continue higher as we have the Iranian sanctions coming. Ultimately, this should continue to a tightened supply and that should of course lead to higher pricing. Ultimately though, I think that we will probably go to the $73 level, and perhaps even the $75 level after that. I look at the $71 level as being extraordinarily bullish and supportive due to the previous gap.
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Brent
Brent markets rallied significantly during the day as well, breaking above the $81 level again. Overall, I think that the market continues to show a lot of support and I think that we will eventually go to the $82 level. At this point, the $80 level underneath should be supportive, just as the $78 level should be due to the gap. Ultimately, I believe that buying the dips continues to be the best way forward as we have seen so much in the way of bullish pressure over the longer-term. I think that the buyers continue to try to push this market towards the $82 level, and then possibly even the $85 level. If we break down below the $70 level, that would be an extraordinarily negative sign, perhaps sending the market down to the $75 level.