Crude Oil Price Forecast – Crude oil markets get hammered again

Crude oil markets got hammered again on Wednesday as the inventory number came out extraordinarily bearish. With that being the case, it’s obvious that we will continue to see a lot of struggles.
Christopher Lewis
Crude Oil daily chart, June 13, 2019

WTI Crude Oil

The WTI Crude Oil market broke down significantly during the trading session on Wednesday, after initially trying to rally. At this point, the market looks likely to find support just below though, so I think this may be a temporary move. I believe that the $50 level will be heavily defended as it is a large, round, psychologically significant figure and of course attracts attention. We are starting to see news reports about how bearish and negative the oil market is, which a lot of times is almost always a sign that we are getting close to the bottom. With that in mind I am looking at the market for opportunities to take advantage of what I think will be a major attempt at a bottom. If we were to break down below the $50 level, we could see the markets break down to the $47.50 level next. In the short term, I believe that we continue to bounce between the $50 level on the bottom and the $55 level on the top.

Crude Oil Price Forecast Video 13.06.19

Brent

Brent markets look very similar in trading on Wednesday, as we crashed towards the $60 handle. That is an area that should be significant support based upon the recent action, so if we were to break down below the $59 level, the market probably unwinds. Otherwise, I think we bounce around in this region, perhaps all the way to the $62.50 level above. I think that Brent will obviously follow right along with WTI, so keep that in mind. In general, I think that the crude oil markets are trying to find a major bottom.

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