Archived Article This article was published more than 5 months ago. The market data, prices, forecasts, and analysis were accurate at the time of publication but may have changed since then. Please use this article for historical reference only and refer to our latest content for current market information.
- Crude oil price consolidation continues but it has a bullish bias as Goldman calls for a case of higher commodity prices.
Crude oil price evolves in a tight range in the last ten trading days, caped by $47 to the upside and $44 to the downside. Traders wanting to avoid further consolidation during the winter holidays may wish to wait for the price of oil to break out of the range before initiating a trade.
Last week it was all about the OPEC+ meeting and negotiations, but the price of oil did not break the range. This week it receives a bullish boost from Goldman Sachs that forecasts that the demand for oil will skyrocket to 102 million bpd in 2022, exceeding pre-pandemic levels.
Many factors are cited as responsible for the strong demand, such as energy transition spending, stockpiling, or a weak dollar. Goldman sees a bull market for commodities, and that should sustain the crude oil price on every dip.
Crude Oil Price Technical Analysis
The recent consolidation on the price of oil may resemble a pennant formation. If that is the case, a breakout above $47 will attract new buyers interested in a move above $55 while having a stop loss order at $44. On the other hand, failure to break higher may attract sellers interested in selling a break below $44 with a stop at $47 and targeting a risk-reward ratio of 1:2.
Crude Oil Price Forecast
