Crude Oil Price Forecast – crude oil market falls on sanction fears

By:

Updated: Jul 12, 2018, 04:44 UTC

Crude oil market struggled a bit during the trading session on Wednesday, as it appears that some countries are starting to step away from Iranian crude, which while ironically should raise demand issues, it also has people concerned about the overall health of the market. Beyond that, if the US dollar starts to strengthen, and it’s threatening to do so, that could cause issues as well.

WTI Crude Oil

The West Texas Intermediate market fell on Wednesday, reaching down towards the $73.25 level. There is a certain amount of support just below extending down to at least the $72 level, so I think that we are going to see traders come back in and try to pick up value in this market. At the first signs of a bounce or support, I’d be more than willing to put a small position on as the market seems hell-bent on trying to break above the $75 level. However, if we were to drop down below the $72 level, that could send this market down to the $70 level rather quickly. I also believe that volatility will start to pick up again, but that may be the very reason we break out to the upside.

Brent

Brent markets fell significantly during the trading session, losing 2% by the time the Americans came on board. We feel as far as $77, and I think that there is a significant support barrier just below at the $76.50 level as well. It is because of this that I think a lot of the short term selling is probably just about exhausted. I would expect some type of recovery, but if we were to break down below the $76.50 level, then I think $76 and then possibly $75 would be targeted next.

Crude Oil Price Forecast Video 12.07.18

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.