Crude oil price action spiked nearly 4% higher on Monday to test the upper end of its recent range. Is the commodity gearing up for a breakout or will Iran nuclear deal and covid risks hinder gains?
Crude Oil Forecast: Oil Prices Edge Lower Toward Trend Support
2021-05-08 15:30:00
Rich Dvorak,
Analyst
CRUDE OIL WEEKLY TECHNICAL FORECAST – NEUTRAL
Crude oil has started peeling back from technical resistance near the 66.25-price level
WTI crude oil prices may extend a bit lower with the commodity starting to consolidate
Oil looks likely to maintain its broader bullish trend so long as sentiment stays upbeat
Crude oil price action finished the week modestly higher. The commodity gained 2% on balance to close around 65.00/bbl. WTI oil prices were up as much as 5% by Wednesday’s trading session, but failure to overcome technical resistance near 66.25 corresponded with a slight pullback from year-to-date highs. Crude oil bulls have likely struggled to maintain buying pressures amid falling import demand from Japan and India. This has increased the odds for crude oil to consolidate lower and underperform other major commodities.
Crude oil price action rocketed higher throughout February, putting in a monthly gain of 18%. The bullish trend could be in jeopardy, however, as the commodity starts to show signs of exhaustion.