Crude oil markets have volatile and negative day on Tuesday

WTI Crude Oil

The WTI Crude Oil market broke down below the $60.50 level, reaching down towards the $67 level underneath. This may have partially been driven by Iranian exports hitting a record high, but we also have concerns about the sanctions coming, so that of course puts a bit of support in the market simultaneously. The $67 level has been supported more than once, and by the end of the day it’s starting to look as if it is going to hold yet again. I believe that we continue to bounce around between the $67 level on the bottom and the $69 level above.

Brent

Brent markets broke down as well, reaching down towards the $73 level underneath, an area that has been supportive more than once, and has even been resistance a couple of weeks ago. The market looks as if it is going back and forth between the $73 level on the bottom, and the $75 level on the top. If we were to clear the $75 level to make a fresh, new high, the market should continue to go much higher, perhaps reaching towards the $77.50 level. However, the US dollar has been rather strong as of late, and that of course puts a bit of bearish pressure in this market as well. Even though we have sold off rather drastically during the day, it looks as if the barriers will continue to hold as the Americans came back to work. Lots of volatility is which can count on more than anything else.

Oil Forecast Video 02.05.18