- Summary:
- Crude oil price remains in a bullish trend but the $60 level sounds interesting from a bearish perspective, despite the rr ratio not being so attractive.
The best performing market this year so far is the WTI crude oil. The crude oil price continued its bullish trend that started in the last part of 2020 and still hovers around the highs. A combination of production cuts, attacks at Saudi oil terminals, successful vaccination campaigns against the COVID-19 virus, rising global growth projections, etc., led to an increase in demand for oil to almost unprecedented levels.
Moreover, the United States economy, the largest oil consumer, shows signs of revival. On top of the good news revealed by the NFP report last Friday, the US releases another $1.9 trillion dollars into the economy, with checks reaching American households as soon as the end of this month. President Biden promised help to Americans, and now he is delivering in less than fifty days since his mandate started.
All these led to an increase in oil demand, but the production is kept tight by the oil producers. As such, the imbalance between supply and demand puts pressure on the price of oil, which reached as high as $68 this week.
Crude Oil Price Technical Analysis
Despite the bullish trend, courageous bears may want to try a short against the highs, with a take profit at the previous support area given by the $60 level.
Crude Oil Price Forecast
