Crude Oil Price Forecast – crude oil has a busy day on Wednesday

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Updated: Aug 23, 2018, 05:38 UTC

As the inventory numbers came out much more bullish than anticipated, crude oil markets extended a rally that had already started in early trading. Because of this, it does look like the crude oil markets are going to recover, but it should also be noted that the previous week had been a very negative news flow, so at this point I think all things are starting to equal out, and it makes sense that the oil markets climb towards higher levels.

WTI Crude Oil

The WTI Crude Oil market rallied significantly during the trading session on Wednesday, breaking above the $67 level. This was exacerbated by the inventory number that was so bullish, so it makes sense that we should continue to see buyers jump into this market on dips. As the $66 level was resistance previously, it should now be supportive. I anticipate that the market is probably going to go looking towards the $68 level. If the US dollar continues to soften a bit, that will also add more fuel to the fire.

Brent

Brent markets also enjoyed a rally during the day, reaching towards the $74.50 level. The market looks likely to pull back at this point though, but I think there’s plenty of support near the $73 level to take advantage of it and find an opportunity to go long. I don’t have any interest in shorting Brent, at least not right now. The US dollar is on its back foot, but even if it is sense, I think the inventory numbers over the last couple of weeks will continue to offer a lot of volatility. There was a longer-term trend line that helped both of these markets bounce, and it looks as if it is holding true now.

Crude Oil Price Forecast Video 23.08.18

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.