Crude Oil Price Forecast August 7, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market initially drifted lower on Friday, but found support at the $48.50 level again. After the jobs number came out much stronger than anticipated, oil markets rallied a bit, perhaps in anticipation of a strengthening demand curve. The market has the $50 level above to worry about, so it’s not until we break above there that I’m comfortable buying with any type of serious size, but I think we will probably go looking to at least test that level. Short-term traders may be able to take advantage of this. Pay attention to the US dollar, because if it strengthens that could put a bit of a headwind in this market, so I think that the volatility should continue to pick up in this market.

Crude Oil Inventories Video 07.8.17

Brent

Brent markets bounced significantly from the $51.50 level underneath, showing signs of extreme bullish pressure. The market looks likely to reach towards the $53 level, but that will be an area that I think is resistive, extending down to the $52.50 level underneath. Ultimately, I think that short-term pullbacks will be buying opportunities, and I believe that we shall eventually reach towards the $55 level, as the demand seems to be picking up. However, if the US dollar strengthens too much, that could be a bit of a headwind in this market, and have is consolidating going forward. Either way, I think the volatility is a given, as there are a lot of different questions circling around the demand and supply issues involving crude oil. The higher that we go in the crude oil market, the more likely it is that Americans are going to drill even more if the cost of crude oil dictates more profits. Either way, be careful with position sizing.