Crude Oil Price Forecast – crude oil markets choppy on Friday

WTI Crude Oil

The WTI Crude Oil market has been sideways during most of the day, going back and forth around the $69.50 level. The market is likely to recover a bit based upon the longer-term charts which are showing signs of stability. The market will more than likely continue to be very noisy, but when I look at the AUD/USD, EUR/USD, and GBP/USD pairs, it looks as if the US dollar is going to roll over a bit. That should supply a bit of support for this market. For confirmation though, I need to see this market break significantly and cleanly above the $70 level. Once it does, I think WTI goes much higher.

Brent

Brent markets are starting to show signs of support again, and I think at this point we are probably going to try to break above the $75 level. The $75 level breaking to the upside would signal that the Brent market is ready to make a move towards the $77.50 level, then possibly the $80 level. I believe that short-term pullbacks will more than likely offer buying opportunities, but you need to be cautious about building up too large of a position in this market. Pay attention to the US dollar, if it continues to lose a lot of momentum, I think that the market will continue to show favorability to some commodities, especially crude oil as there are still a lot of questions as to demand. I believe the 4.1% GDP number in the United States will offer a bit of a cushion for short selling as well.

Crude Oil Inventories Video 30.07.18