Affiliate Disclosure
Affiliate Disclosure adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Crude Oil Forecast: The Case for Crude Oil Is Still Optimistic

Crude oil saw a minor Monday dip, then recovered, signaling optimism for the long term. WTI near $76, eyeing $80; Brent bouncing off 50-day EMA, aiming for $92. Despite choppy conditions, no interest in shorting given potential demand spike and geopolitical tensions.

  • The early hours of Monday saw a little decline in the price of crude oil, but it later recovered and began to show signs of life.
  • Given that spring is usually a time when crude oil prices rise, all other things being equal, it appears that the markets for the commodity will remain optimistic about the long run.

WTI crude oil

The US oil market has somewhat rebounded from the 50-day moving average (50-day EMA) early on Monday. The 50-day EMA and the $76 level provide ample support for the market. Having said that, the market is attempting to gather sufficient strength to go higher. And I do believe that we will eventually make a significant dent in the $80 level above, which has been like a brick wall. In the short term, I believe there will be a lot of noisy activity. Having said that, the market is probably going to continue to see more people buying on dips, especially as attention turns to spring, which is usually a season with higher demand.

WTI Crude Oil Forecast today 27/02 - WTI attempting to gather sufficient strength to go higher (Chart)


Top Forex Brokers

    Even though Brent opened the trading session with a reduced gap, it is still bouncing off the 50-day exponential moving average and appears to be exhibiting signs of life. We could go much higher, possibly hitting the $92 level, if we can rally from here and break through the $84.50 level, which is, to be honest, rather far away. In my opinion, there is still a lot of support below the $80 mark, thus there is no longer any justification for shorting oil in this scenario. It does appear that both classes are producing a circular bottom, so it doesn't necessarily mean that it needs to go straight up in the air. Additionally, there will undoubtedly be an increase in demand.

    Brent Crude Oil Forecast today 27/02 - Exhibiting signs of life (Chart)

    The Middle East is naturally tense, and supply has been decreasing as well; these factors point to an upside oil price spike. It's also important to remember that central banks will probably soften monetary policy, which will frequently spur development and, naturally, increase demand for energy. If that’s the case, we may be at the beginning of something rather big. Nonetheless, I think this is a scenario that is going to remain choppy, but at this point in time I don’t have the interest in shorting crude oil at all.

    Ready to trade WTI Crude Oil FX? We’ve shortlisted the best Forex Oil trading brokers in the industry for you.

    Christopher Lewis
    About Christopher Lewis

    Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.


    Most Visited Forex Broker Reviews