Crude Oil Price Forecast – crude oil markets continue to look soft

WTI Crude Oil

The WTI Crude Oil market broke down a bit during the trading session on Friday after the jobs number, but at this point I don’t think it’s a question as to whether or not the jobs number will offer more demand, it’s more or less a question of global trade. There are a lot of concerns when it comes to the global markets right now and global trade as the US and the Chinese are entering even more destructive conversations. As long as that’s the case, I think there will be a lot of concern when it comes to crude oil, and the strengthening US dollar isn’t helping the situation either. Nonetheless, I think there is support underneath and it looks as if the $67 level is trying to offer it. The $66 level and of course the $65 level both could be areas where we see a bounce. However, I would not be quick to jump in I would rather see this market collect itself and give us a good strong green candle on the daily chart.

Brent

Brent markets also broke down a bit during the trading session as we continue to see a lot of volatility but ultimately I think that we do see a lot of noise out there that continues to have oil traders a bit concerned. Most of it involves US and China arguing, but there’s also the concern about the strengthening greenback. As long as that’s the case and there are fears of global trade, Brent is going to struggle. The $75 level underneath offers a significant psychological support level, so we will have to see how that behaves. I would not be a buyer here though.

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