Crude Oil Price Forecast – crude oil markets break down significantly on Wednesday
WTI Crude Oil
The WTI Crude Oil market broke down rather significantly during trading on Wednesday as there was a bit of a “risk off” move around the markets. This of course has people selling crude oil, as the US dollar rallied. At this point, the $73 level looks as if it is trying to offer a bit of support though, so it’ll be interesting to see if we see some type of bounce from here. If we break down below the $73 level, that opens the door to the $72.50 level underneath which is potential minor support. Overall, I believe that the $75 level has shown itself to be rather resistive, so it is going to take something special to break above there. We have a lot of moving pieces when it comes to the crude oil markets right now, so keep that in mind. We have the Iranian oil sanctions which should drive prices higher, but at the same time we have a lot of concerns when it comes to global slowdowns.
Brent markets also broke down during the day, slicing through the $83.50 level. I think that the $82.50 level underneath is massive support. Overall, I think that we continue to go a bit lower, but eventually we should find buyers underneath. It looks as if the WTI Crude Oil market may lead the Brent market higher, so pay attention to that grade of oil if you are trading Brent. If we break down below the $82.50 level, the market could drop down towards the $82 level, possibly down to the $80 level. Overall, I think that value hunters will be trying to get involved to the upside, but we certainly have to drop from here to find an opportunity.