Crude Oil Price Forecast – crude oil markets continue to hang onto support

WTI Crude Oil

The WTI Crude Oil market fell a bit during the trading session on Friday, reaching towards the $50 level, an area that has been massive in its support and importance. I think at this point, if we break down to a fresh, new low it would send this market down to the $45 level. If we rally at this point, I think the $55 level would be rather resistive. In general, I believe that the market participants are waiting to see whether Russia can convince others to cut production based upon rumors that are going around right now. If they do, we could get a little bit bigger move than that. Otherwise, I think rallies are to be faded.

Crude Oil Inventories Video 03.12.18

Brent

Brent also looks very weak but it is hanging onto significant support. That support is right around the $60 region, and at this point I think if we make a fresh, new low then we go looking towards the $55 level. Alternately, if the Russians can talk others into cutting production or there’s some type of comment made about that, it’s likely that oil will go racing towards $65 or so. We are most certainly in a nasty bear market though, so any rally at this point would have to be looked at with suspicion and less serious cuts are agreed to. OPEC is meeting in a couple of weeks it’ll be interesting to see what they have to say but quite frankly at these prices, OPEC is going more than likely to look to cutting.