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.
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Crude Oil Price Forecast
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