position: relative; Oil Price forecast for December 2020. Oil prices started strong this year at $64/b in January. The Euro may start rising at 3 price levels. First, the Euro is by far the most important, arguably the only, leading indicator for the crude oil price. .content310 { order: 0; } Even though we do not expect a big move in crude oil as per our 2020 forecast we still are on the lookout for a low probability bullish spike. Below this, the market is likely to go after a 61.8% Fibonacci retracement level of 29.40. Prices reflect crude's spot price. Global inventories are at sufficient levels, with OECD commercial stocks in days of forward cover at around 58 days in April. Many investors tend to stick to facts from the past. Crude Oil Price Forecast – November 17, 2020 WTI Crude Oil Technical Analysis and Short-Term Forecast The focus of the WTI analysis is switched to the January 2021 contract today because December will expire on … flex-direction: column; We continuously, throughout the year, publish updates on our annual forecasts. The only source available at the time of writing is the one here on Marketwatch with a few viewpoints on the crude oil market. font-weight: bold !important; Crude oil weekly forecast ANALYSIS ... Oil – Crude Oil Inventories. display: inline-flex; According to the oil price projection provided by the US Energy Information Administration (EIA), the prices of Brent Crude will average at $34 per barrel in 2020 and $48 per barrel in 2021. We expect crude to be neutral overall, but fall with the Euro and rise with the Euro. What happened? flex-basis: 70%; Either at current levels in which case we expect a short term rise in crude. } } font-size: 17px; A well balanced market is what the OPEC wrote, and then a few months later one of the biggest crude oil crashes in history of mankind started. Any revision in our forecast are published in the public domain and appear in our free newsletter. campaign material or ballot propositions. Did you like what you read? Overall, the ongoing rise in supply would be adequate to satisfy the growth in oil demand in 2H14, resulting in a well-balanced market. December looks like it may be a promising speculative bullish month for crude oil. .button310 { So we can reasonably expect a certain point in the next decade to see a breakout above $120. WTI Crude Oil Outlook for December: Speculative price range for WTI crude il is 39.30 to 53.85 USD. And as investors we are ONLY interested in big moves, not the peanuts. The U.S. Energy Information Administration (EIA) expects that Brent prices will average $49/b in 2021, up from an expected average of $43/b in the fourth quarter of 2020. In the end commodities have supply and demand, and price is determined by supply and demand. font-style: normal !important; OPEC have also weighed in on their prediction for 2020, and based on extremely low oil growth in 2020, they too have lowered their prediction. In 2020, global oil demand is expected to contract for the first time since the global recession of 2009. EIA expects high global oil inventory levels and surplus crude oil production capacity will limit upward pressure on oil prices through much of 2021. However, the Euro falling below 105 would mean that both the Euro and crude would fall further, with support in the 96 to 98 area on the Euro. On the contrary. -ms-flex-direction: column; For investors all that matters is when crude turns bullish. So then how is it possible to do a reliable forecast? There is sufficient evidence that higher economic growth in the current quarter will materialize, helping to compensate for the subdued performance of the global economy in 1Q14. October 2020: Monthly prices December 2020 (XLS) Executive summary October 2020 (PDF) A shock like no other: The impact of COVID-19 on commodity markets April 2020: Annual prices December 2020 (XLS) Price forecasts October 2020 (PDF) Set up to fail? top: -10px; Let us know what you think! As WTI crude oil tests highs it has not ventured in since March, price values for the commodity may begin to target higher resistance levels. But why don’t we look for the Dollar chart instead of the Euro? Once it starts rising, which might happen towards the end of 2020 or in 2021 we will see a rise in the crude oil price. Crude oil price forecast 2020: U.S. Energy Information Administration: $57/b by Q2 of 2020: Crude oil price forecast 2020: Marketwatch notes several analysts: $100/b in 2020: Crude oil price forecast 2020 (no other predictions published so far) (no other predictions published so far) font-size: 18px !important; That’s because crude has a track record of rising aggressively, but it only does so if and when it breaks out. An additional signal in favor of the growth of quotations and prices for Brent oil will be a test of the rising trend line on the relative strength index (RSI). Let’s go back to the previous point about supply demand factors and the fact they are not useful for our crude oil price forecast. Resistance around 41.70 USD looks significant, but if prices rise on political developments speculative quick spikes … The only reliable leading indicator is to be found in intermarket dynamics, the main theme of InvestingHaven’s research method. We don’t expect this to happen in 2020 nor 2021 though. A price of 53.00 USD for crude oil is not far-fetched; in fact, it sounds and looks much more viable via technical charts than a strong drawdown through support levels below the 42.00 USD mark. padding: 10px 10px 10px; color: #ffffff !important; This is the most likely scenario. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. The U.S. Energy Information Administration (EIA), publisher of the 2014 global energy report, did not refer to anything like a market imbalance! margin: 15px 0 15px 0; Certainly, a quantified value on WTI crude oil’s price based on how the far environmental mandates will impact the industry is conjecture at best before any mandates are suggested and authorized. Read on to understand what to look for before getting exposure to the crude oil market. Comments including inappropriate will also be removed. If these marks are broken higher, speculative forces may begin to believe WTI crude oil has the capability to challenge the 50.00 mark. Here as well, the trick is to make a thorough analysis of the chart(s) and the patterns. In other words we conclude that supply demand is useless in forecasting the big moves in crude oil. This may start in 2020, but will likely morph into something more ‘tangible’ in 2021. font-size: 22px !important; or personal attacks of any kind will be deleted. border: 1px solid #E7E4DF; Commodities investors continue to refer to the big commodities boom of 2002 – 2011. }. padding: 0 10px; In other words we have to wait for the Euro first. And as investors we are ONLY interested in big moves, not the peanuts. As per legendary investor Stan Druckenmiller: The mistake 98% of money managers and individuals make is they feel like they have got to be playing with a bunch of of stuff. Twitter: twitter.com/investinghaven. Right now the Euro is not bullish, it is trending down. This is an overview of forecasted crude oil prices for 2020 and 2021 by other analysts. His work appeared on major financial outlets like FinancialSense, MarketWatch, ... Email: taki.tsaklanos@gmail.com. Crude oil prices & gas price charts. We absolutely recommend to subscribe to our free newsletter in order to receive future updates. We can continue for a while, with Accenture’s crude oil report or CNN data, … but the point is clear in the meantime. We can reasonably expect crude to trade in a wide range between $43 and $75. .text310{ Those are the ones we want to forecast and be invested in. A significant amount of more optimism within the global markets may have to occur for that to take place, but if investors remain optimistic, push equity indices higher and have a firm belief that international commerce will improve long term, this could set off more speculative buying of the commodity. Around the same time we saw this supply/demand report from the ? That’s why readers should follow our 2021 forecasts thoroughly. padding: 10px 10px; This perception may attract more bullish action during the month of December. a positive signal for a rebound in the global economy in the second half of the year, Overall, the ongoing rise in supply would be adequate to satisfy the growth in oil demand in 2H14, resulting in a well-balanced market, In other words we conclude that supply demand is useless in forecasting the big moves in crude oil. Crude oil markets were relatively quiet on Friday, as we head into the weekend trying to figure out whether or not there is going to be stimulus. Support at 42.90 USD appears adequate, but if taken lower, crude oil could technically perhaps find a way to test 39.30 USD. This is a big problem for our crude oil price forecast. .left310 { margin: 0 5px 5px !important; } Brent crude oil - data, forecasts, historical chart - was last updated on December of 2020. Looking forward, we estimate it to trade at 42.07 in 12 months time. line-height: 18px; WTI Crude Oil began November retesting lows but in the past three weeks has managed to break through resistance levels with a flourish. } Oil - US Crude IG Client Sentiment: Our data shows traders are now net-long Oil - US Crude for the first time since Dec 09, 2020 when Oil - … order: 1; The data we have (Euro charts and crude charts) need to be analyzed thoroughly. } } font-weight: lighter; You heard this very well, hardly any leading indicator to forecast the future price of crude oil. Buying WTI crude oil on slight reversals lower may prove to be the wise speculative decision in the coming weeks. box-sizing: content-box; Important aspects of his work involve risk analysis and advisory services. text-align: center; The commodity has not only lived to play another day and be wagered upon by speculators, but it now is within the confines of an actual bullish trend as December begins. width: 100%; Oil and Gas. But a bullish trend has developed which may be difficult to curtail over the next month. This lower objective, which is adjusted to $43.8 for tomorrow, is a highly confluent and crucial wave projection and retracement. WTI crude oil forecast for 2023 – We can expect crude oil prices to drop below the $ 60 resistance level, in order to complete a 38.2% Fibonacci retracement to $ 40.72. background: linear-gradient(180deg, rgba(19,19,21,1) 32%, rgba(159,55,44,1) 90%); font-family: 'Noto Sans', sans-serif; line-height: 24px !important; Robert also works in private finance with investors and companies delivering financial and management services. Currency trading on margin involves high risk, and is not suitable for all investors. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. Note that there is hardly any crude oil price prediction for 2020 or 2021 published. .right310 { We publish updates on our crude oil forecast. We don't support these forecasts, we just share them to illustrate how other analysts think about a crude oil price forecast for 2020 and beyond. background: #000000; Selling at higher level is a must! Speculative price range for WTI crude il is 39.30 to 53.85 USD. This means we have to carefully analyze the Euro chart carefully, very carefully. Please make sure your comments are appropriate and that they do not promote services or products, political parties, } color: #ffffff; The poll of 39 economists and analysts conducted in the second half of December forecast Brent crude prices would … padding: 7px; Based on our forecasts, including this crude oil price forecast for 2020 and 2021 we try to understand which markets may become hot in the next 24 months. font-size: 18px !important; The answer may be a combination of all the listed factors. Certainly, crude oil could see downside pressure develop, and it is a certainty that reversals lower will occur. The second signal will be a rebound from the support level on the price chart. 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025; 53.2: 56.9: 60.8: 65: 69.4: 74.1: 79.2: 84.6: 90.4: 96.7: 103.4 line-height: 25px !important; Wait a minute, what about supply demand factors? Moreover, inventories in the US – the only OECD country with positive demand growth – stand at high levels. Nor did the OPEC, a global reference in the oil market, in their June 2014 crude oil report. So the conclusion we derive from this chart, and mapping it to the crude chart, is that major moves happen in conjunction with major moves within Euro’s chart pattern. background: rgb(19,19,21); The average for the month 49.49. align-items: center; padding: 2px 2px; Any reasonable person would say that supply and demand was way out of synch, and this would have caused the price of crude to crash. The commodity has put in a flurry of gains the past three weeks, but it is still below its stronger March trading values as they beckon their targets to speculative forces within the marketplace. color: #c0c0c0; Brent Oil Forecast: Q4 2020: Brent Oil Forecast: 1 Year: Brent Oil Forecast: 3 Years: Price: $43-$47. } Note that all our forecasts are analyzed and written by InvestingHaven’s research team, not by other analysts, in a simple to understand forecasting framework. background: none repeat scroll 0 0 white; The supply-demand balance for 2H14 shows that the demand for OPEC crude in the second half of the year stands at around 30.3 mb/d, slightly higher than in the first half of the year. The horizontal bars are the ones that have an additional meaning. text-align: center !important; As seen on below chart, our leading indicator for global markets, the EURO peaked at its major secular resistance right before the crude oil price crash started. But we also do publish other forecasts. font-size: 11px; But sticking to that one fact implies you will miss a lot of opportunities just because you did choose to wait for that one asset to move. Home > Energy Investing > Oil and Gas > Crude Oil Price Forecast for 2020. David Fessler | October 9, 2019. line-height: 25px !important; However, as November begins to come to a close, the commodity is standing on the other side of its trend line as it challenges highs it has not experienced since early March. We expect the 105 area to hold. This is an overview of our crude oil price forecasts from last years. Crude Oil Price Forecast for 2020. Not likely to happen though. Crude Oil Price Update – Trader Reaction to $49.07 Will Determine Strength of Rally The main trend is up according to the daily swing chart. Anyone interested to invest in crude oil can check this guide. Mostly there are 2 to 3 amazingly profitable opportunities per year in markets. In other words quality is much more important than quantity when it comes to forecast the future direction of crude oil. Once that happens it will send bullish energy to crude oil. Further, the continuation of the rise in the oil rate to the area above the level of 54.05. width: 100%; The survey added that Brent crude oil prices are expected to average $65–$70 per barrel by 2020. position: relative; The IMF (International Monetary Fund) forecasts that crude oil prices—Intercontinental Exchange, Brent, Dubai, and West Texas Intermediate—could average around $45.30 per barrel in 2020. } line-height: 15px; Brent Crude Oil Forecast and analysis December 2, 2020. Before the US presidetial election, the commodity began to touch lows not traded since late May when WTI crude oil traded near 35.50 USD. Especially crude oil saw an amazing spike in 2008 right before the global financial crisis. Please enter your username or email address to reset your password. In Q4, Brent Crude might even climb above $40 to reach $44.08. .advbox.advboxstyle>strong:first-child { .button310 span { font-weight: bold; Crude Oil Price Forecast, Crude Oil (CL) price prediction. The collapse of commodity agreements April 2020 : Charts and data files October 2020 … Note that this happened when crude oil’s long term trend was about to break down. So no, supply demand is not a reliable factor in forecasting the crude oil price for 2020, 2021 nor any other year! However, crude has a complex chart, and we can’t accept simplification. margin: 0 0 -9px !important; } This is a decrease from an average of $64.37 per barrel in 2019 and reflects a forward … flex-direction: row; Second, the crude oil chart itself. Commodity, and the Euro is by far crude oil price forecast 2020 most reasonable forecast we reasonably. Oil saw an amazing spike in 2008 right before the historic crash in crude oil inventories which case we some... 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