Crude Oil Price Forecast – crude oil markets explode to the upsideCrude oil markets shot straight up in the air at the open cry open during the day on Tuesday, as the volatility and confusion in the markets continues.
WTI Crude Oil
The WTI Crude Oil market rallied during the trading session on Tuesday, as we continue to see a lot of volatility in the marketplace. By doing so, it looks as if the market is ready to continue the upward mobility of the longer-term move, but don’t get too excited, there’s a lot of selling pressure above and of course random headline’s that throws the US dollar around in circles. Because of this, it’s very likely that we will continue to see a lot of choppy trading. I anticipate that the $70 level above is resistance, just as the $69 level is but it does look like it will probably give way. If it doesn’t, then we will find ourselves testing $68 again rather quickly.
Brent markets continue to be very noisy, suggesting that there is a lot of confusion around the supply and demand part of the equation yet again. Ultimately, this is a market that I think will continue to be difficult to trade, just as many other markets are right now due to external factors. If we were trading simply on fundamentals, you can make an argument for higher prices. However, with the US dollar doing what it’s been doing over the last several weeks, it’s not quite that simple anymore. As the US dollar rises, that puts downward pressure on the oil markets. Beyond that, there are concerns about trade wars and the like. We don’t really have much of a trend until you zoom out to the weekly chart, and even then there are obvious selling points above.