Crude Oil Price Forecast – crude oil markets bounced on Wednesday

The WTI Crude Oil

The WTI Crude Oil market rallied significantly to kick off the day on Wednesday, breaking above the $67 level, and a bit of a “dead cat bounce”, after selling off so drastically over the last several days. I think at this point it’s likely that the market will continue to try to find an acceptable level, but with the Saudi Arabians suggesting that they are going to pump out as much crude oil as they can, it should flood the market with the commodity. At this point, I think it’s extraordinarily bearish, simply because the EIA numbers came out rather bearish.

Brent

Brent markets also have struggled to break above the $77 level during the day after snapping much higher. I think at this point, we will probably see sellers jump back into this market, pushing it towards the psychologically significant round number of $75. At this point, I anticipate that we will continue to see the market drift lower, but I would expect to see a significant amount of support at $75 again. If we can break above the $77 level on a daily close, then perhaps we could continue to go a bit higher. The meantime though, I think selling the rallies and signs of exhaustion will probably be the best trade to take, as the market has certainly turned decidedly bearish over the last several days.

Crude Oil Price Forecast Video 25.10.18