Supply data also supports the oil in the short term. Crude exports to Asia and Europe surged to a record high in May as U.S. refiners found alternative sources of supplies amid the Middle East crisis. In my view, U.S. crude stocks will also drop due to strong demand in the physical market. Therefore, crude oil prices can remain volatile. A peace deal could have a negative impact on prices, but limited supply and shipping risks could support WTI and Brent at elevated levels.
WTI Oil Forecast: $80–$120 Range Defines the Next Move
The short-term outlook for WTI crude oil still shows strong consolidation between $80 and $120. Crude oil prices dropped from the $105 resistance level after hitting the black dotted trend line on May 19.
This drop hit the support of $87 and produced a rebound higher. A break above $94 in WTI crude oil will likely push prices toward $100. But a break below $87 will likely take prices toward the $80 area.
