Crude Oil Price Forecast – crude oil markets fall hard again on ThursdayCrude oil markets fell again during the trading session on Thursday, as the OPEC meeting failed to produce a production cut schedule that was strong enough to push the market to the upside.
WTI Crude Oil
The WTI Crude Oil market has broken down during the trading session on Thursday again, crashing into the $50 level, an area that of course will cause a lot of interest. I think that if we break down below this level, and let’s face it today is the Nonfarm Payroll Numbers announcement which could make that happen, we will continue to go much lower. At this point, I would anticipate a move to the $45 level, possibly even lower than that. If the jobs number suggests that we are slowing down, that could be rather ugly.
Crude Oil Forecast Video 07.12.18
Brent markets also look very ugly , as we have broken below the $60 level again. Underneath, I think that if we continue to go lower, we could be kicking off a bearish flag that opens up the possibility of a move to as low as $40. Ultimately, this is a market that I think continues to see a lot of sensitivity to not only OPEC, but US dollar strength. Beyond that, we have a lot of concern when it comes to being oversupplied, which of course is the absolute worst thing that can happen to this market. Rallies at this point are to be treated with suspicion, at least not until we break above the $65 level, which would show significant momentum, and perhaps a complete change in the psychology of this marketplace. Until then, I think that rallies are going to be punished and oil continues to slide although I’m the first to admit that we are a bit oversold in the short term.