Crude Oil Price Forecast August 31, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market had a volatile session during the day on Wednesday, as we continue to bounce around. Overall though, the sellers return every time we rally, and I think that should continue to be the case going forward. We did get a stronger-than-expected draw on supply, but we still have a massive backlog of supply as the hurricane that hit Texas has crushed the demand for petroleum as refiners are closing. Because of this, it’s only a matter of time before we sell off, and I don’t have any interest in buying. I look at rallies as selling opportunities, as the crude oil market continues to look very bearish. Beyond that, we are going to have a serious problem with oversupply even with the hurricane action over the last several days.

Crude Oil Price Forecast Video 31.8.17

Brent

Brent markets broke down during the session, slicing through the $51.50 level with these. That being the case, it’s likely that the market will continue to go much lower, perhaps reaching towards the $50 handle. The markets continue to struggle, and I believe that short-term rallies are going to continue to be selling opportunities. Ultimately, this is a market that has a massive amount of head when ahead of it, and with this I have no interest in buying. I think that the $52 level is now acting as a bit of a ceiling in the market, and I now also believe that we will eventually break below the $50 level and continue to go much lower. The markets will be volatile, but quite frankly there is plenty of reason to think that the overall oversupply should continue, thereby driving down the value of crude oil over the next several sessions. I have no interest in buying.