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Crude Oil Price Forecast – crude oil markets gapped lower on Friday

Crude oil markets got pummeled on Friday as the bearish pressure came back into play immediately. We are covering towards the lows of the week, signaling that perhaps we will see continued selling pressure, and at this point I think that rallies will continue to struggle.
Christopher Lewis
Crude Oil daily chart, July 23, 2018

WTI Crude Oil

The WTI Crude Oil markets gapped lower to open up the Friday trading session. It’s obvious that there is a lot of bearish pressure here, I think at this point crude oil will probably continue to struggle. The US dollar continues to strengthen, and that of course works against the value of crude oil, just as Libyan ports and fields are reopening. More supply will of course mean lower pricing. Beyond that, the Saudi Arabian government officials have suggested that they are going to dump more oil into the marketplace, so I think at this point oil looks very vulnerable to selling pressure. A break below the $67 level opens up the possibility of $65 next.

Brent

Brent markets moved the other direction, but still need to deal with a massive uptrend line and the recent selloff, and I think it’s only a matter of time before we continue the downward pressure. In fact, I would not be convinced of any rally until it broke above $75 on a daily close. I look for signs of exhaustion to start selling again, and of course a strengthening US dollar has worked against the value of commodities overall. Adding to the fun and excitement, Donald Trump has just threatened to put tariffs on everything coming into the United States from China, which will almost certainly slow down global demand for crude oil. I think at this point, this is a very difficult market to buy until we get some type of major turnaround and attitude.

Crude Oil Inventories Video 23.07.18

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