Crude oil falls on Thursday to find support

WTI Crude Oil

The WTI Crude Oil market initially fell during the session on Thursday, reaching as low as $70.52 before turning around and rallied quite significantly. The initial selloff was a reaction to the CPI figures being a bit of a mess in America and suggesting that perhaps there would be less demand. However, in the big scheme of things that doesn’t change much for the longer-term outlook for this market. Because of this, I like buying this dip, and I think that we will eventually go higher, reaching towards the $72.50 level. I look at the $70 level as a bit of a “floor” right now, and if we can stay above there I have no interest in shorting.

Brent

Brent markets also fell initially on Thursday but found enough support at the $76.50 level to bounce and show signs of life. Because of this, the market looks as if it is going to go looking towards the $70 level above as a goal, and perhaps even higher than that. I still believe that the longer-term target is $80, and I recognize the $75 level underneath as the “floor” in the market. With that in mind, I look at these dips as potential buying opportunities, but I also recognize that you should not put too much into the market in one shot, as the volatility will continue with headlines coming out from Iran, Saudi Arabia, and of course economic figures will have their influence as well. A strengthening US dollar has put a bit of a drag on what would otherwise be a very strong rally.

Crude Oil Forecast Video 11.05.18