Crude Oil Price Forecast – Crude Oil Markets Failed To Break Out

WTI Crude Oil

The West Texas Intermediate Crude Oil market broke higher during the trading session on Friday after it was announced that the United States killed an Iranian general in Baghdad. That being said, the market is going what was expected, pushing oil higher. However, later in the day we gave back at least half the gains and it looks like we may give back more by the time the pits close. This is not a good look and quite frankly I have to ask at this point: “If killing an Iranian general won’t break out the oil market, what will?”

Crude Oil Inventories Video 06.01.20

Brent

Brent markets also look very similar, as the market broke above the $67.50 level but has given back quite a bit of those gains. There is a bit of a “wall of resistance” extending all the way to the $70 handle. Because of this, it’s not a huge surprise that we have pulled back a bit and if things continue the way they are it’s very likely that this market will drift back into the consolidation phase. There is a serious concern about demand and the higher oil goes, the more likely you are going to see shale producers in the United States produce even more. That being the case, the upside for oil looks very limited. If we were to wipe out the candlestick from the trading session on Friday, this market falls, and probably falls pretty hard.