On the 18th of November 2021, our market analysts forecasted that WTI Oil prices will rise to hit $80 per barrel after the price fell temporarily in November. This forecast was dead-on! 2021 opened at $48.29 and the year closed at $75.12 which is approximately a 56% appreciation. It is probable that the continued rise of the Oil price is linked to the low impact of the previous variant, Omicron. Since the start of the new year, the oil price has continued its bullish movement and so far from the first week of trading, it has appreciated by 6% from $75.12 which was the year’s opening price.
As nations record increasing cases of the new Covid-19 variant, IHU, the oil market is bracing for a price dip even though OPEC signals confidence in the oil price. Some news outlets report that due to the new variant, there is uncertainty surrounding the demand for oil in the next couple of weeks. Since the ease of lockdown of 2021, the price of crude oil has maintained the support level at $61.63. According to our analysis, we forecast an oil price dip to $67.50 even though there are no indications yet. On the 4hr chart, the oil price is in the higher region of the Bollinger bands. Despite the price of crude oil is showing that it was overbought in December, the price is yet to reverse.
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