Crude Oil Price Forecast – crude oil markets break down on Tuesday

WTI Crude Oil

The WTI Crude Oil market has found the $70 level to be far too much, as we have dropped over 2% early on Tuesday in futures trading. The market has cleared the $69 level, and now looks set to test the $68.50 level as I record this, and perhaps even lower levels than that. I think at this point, it’s obvious that the oversupply of oil will continue to be a major issue, and if the US dollar were to continue strengthening, that could be a major problem for this market as well. I believe that selling rallies will continue to be the way going forward, as crude oil has suddenly shifted attitude.

Brent

Brent markets rolled over pretty significantly during the trading session as well, as the $75.50 level has offered too much resistance. Breaking down below there to the $74.50 level, and perhaps even lower than that. The market has been very shaky at the top of this range, and it makes sense that we could see sellers coming back in. On the other hand, the market could break above the $76 level, and if it does they Brent markets could go much higher. Otherwise, I anticipate that we will continue to see a “sell on the rallies” type of situation develop.

If we break down below the $75 handle, the market will then go looking towards the $73 level, perhaps even the $72.50 level. I think that if the US dollar continues to strengthen, that will only add more fuel to the fire over here as well. I will wait for a bounce, and then go looking for a shorting opportunity.

Oil Forecast Video 01.08.18