Crude Oil Price Forecast – crude oil continues to slump on Friday

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Updated: Jul 7, 2018, 04:30 UTC

Crude oil markets pullback to be during the day on Friday, but this isn’t to say that I am bearish. Quite the opposite, I believe that this is a pullback that was necessary, and I think it should offer plenty of value given enough time. When the market gets overdone like we had seen, I love seeing these pullbacks as it offers a nice trading opportunity.

WTI Crude Oil

The WTI Crude Oil market initially pullback during the day but did bounce a little bit from the $72 level on Friday. Remember, a lot of US traders are away during most of this past week as it was Independence Day, and of course the US is where most of the WTI trading is done. The $75 level above offered resistance, but that’s not a huge surprise as it is psychologically important. I believe that the $70 level underneath should be supportive, and although we have formed a shooting star the weekly chart, I believe that eventually the buyers returned so I am not a seller, I am patiently waiting some type of balance.

Brent

Brent markets also fell during the day, reaching towards the $76 level. I believe that there is a significant amount of support at $75 level, followed by the $73 level. There are simply far too many disruptions around the world in places like Libya, Venezuela, and of course I ran, to keep these markets down for long. I also believe that the US dollar is starting to turn around, and if it weakens, that should also drive oil prices higher. I believe that at this point the markets may be a little bit overdone, but value hunters will certainly come back to pick up the pieces.

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About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.