WTI Crude Oil market
The WTI Crude Oil market broke down significantly during the trading session on Friday, slicing through the $70 level. That’s an area that was supportive in the past, and I think that we will continue to go lower, perhaps reaching down to the $67 level. I think that short-term rallies will continue to offer selling opportunities, but I also believe that the $67 level could bring in a lot of buying pressure based upon the longer-term charts. A strengthening US dollar should continue to put bearish pressure on the market.
Brent
Brent markets also broke down during the Friday session, slicing down through the $70 level. I think that the market continues to see a lot of bearish pressure in the short term, perhaps reaching down to the $75 level. I think if we break down below there, we will more than likely reach towards the $70 level which was previous resistance. Ultimately, this is an area that will attract a lot of attention, and I think that it is a market that continues to be very noisy, and of course the threat of an OPEC cut coming on wound is likely going to continue to cause a lot of issues. However, there are plenty of support at levels below the could come into play over the next several sessions.