Crude Oil Price Forecast – Crude oil continues to show underwhelming momentum

The crude oil markets try to rally a bit during the trading session after gapping higher on Monday, but quite frankly it can’t seem to sustain rallies at all recently, and of course Monday wasn’t going to be any different.
Christopher Lewis
Crude Oil daily chart, July 23, 2019

WTI Crude Oil

The WTI Crude Oil markets gapped higher to kick off the week on Monday but then continue to go towards the $57 level before finding sellers. By doing so it shows signs of exhaustion, that we could perhaps reach back towards the $55 level yet again. Quite frankly, at this point if tensions with the Iranians can’t give crude oil markets a post, I can imagine what would. The dynamics of the crude oil markets are changing before our very eyes, as the Americans produce 75% of their own domestic consumption on their own, with a large majority of the other oil coming from Canada. Quite frankly, Iran doesn’t truly matter like it used to.

Crude Oil Video 23.07.19

Brent

Brent markets also fail to hang on to gains for a large portion of the day, although it did gapped to kick it off. It looks as if rallies will continue to be faded in this market, just as they are in the WTI grade, as crude oil simply can’t hold its own. There is a serious lack of global growth that of course will weigh upon the idea of crude oil going higher, even with a shrinking US dollar due to interest rate cuts. The attempt at reflation is on its way, but that being said we have a long way to go before demand in the crude oil market overtakes the massive supply that we seem to have. I suspect that this market, just like the WTI grade, will be one that you can sell on rallies. In this instance, I think you can aim for the $60 level.

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