Crude Oil Price Forecast – crude oil markets swoon on Friday

WTI Crude Oil

The WTI Crude Oil market tried to break above the $72 level on Thursday but found too much in the way of resistance there. By pulling back the way we have, it looks as if we are testing support again, but are finding it. I think the $70 level is crucial, so if we break down below there we could get some negativity at that point. In general, I believe that oil is in trouble for the short term, but longer-term we still have plenty of reasons to think that oil will rally. For example, we have the Iranian sanctions that are going into effect, so perhaps we’ve had some profit taking as of late. The inventory number was a bit of a disappointment last week, but quite frankly that happens occasionally.

Brent

Brent markets also fell during the day, slicing through the crucial $80 handle. That’s a psychological barrier, but I think there’s even more support underneath near the $77 level, and we probably have a few more days of weakness before the value hunters come back in and pick up the Brent market. We also have the US dollar perhaps having an effect on the market, so keep that in mind as well. I believe at this point, we should start to see value hunters coming into the marketplace rather soon, but make sure you get a bounce before you start putting money to work. Otherwise, signs of resistance near the $80 level and perhaps even the $81 level could be selling opportunities going forward.

Crude Oil Inventories Video 15.10.18

This article was originally posted on FX Empire

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