Crude Oil Price Forecast – crude oil markets pulled back slightly on Friday

Crude oil markets continue to slide during the trading session on Friday, and relatively quiet trading. This isn’t much of a surprise, because we are trying to reach down towards major support. There are a lot of questions out there right now, as crude oil has suddenly become very choppy.
Christopher Lewis
Crude Oil daily chart, February 11, 2019

WTI Crude Oil

The WTI Crude Oil market has pulled back slightly after gapping lower on Friday, but the volume and volatility just wasn’t there. I think a lot of traders out there are trying to glean whether or not global demand is going to continue to be as it is, fall, or rise. There is one argument of the Federal Reserve easing its monetary policy offering an opportunity for buyers to come in and pick up risk appetite assets, such as the market here. However, the question then becomes whether or not the global demand will pick up. If it doesn’t, oil is dead in the water. I believe currently we are basically bouncing back and forth between $50 on the bottom, and the $55 level on the top.

Crude Oil Inventories Video 11.02.19

Brent

Brent markets also look a bit choppy and confused. In this market, I suspect that the $64 level is a major resistance level, possibly extending to the $65 handle. On the downside, I see the $60 level offering significant support. Because of this, I think that the market is essentially one that you should be trading from a back-and-forth type of range bound system. If we can break out of this range, then obviously you can make a little bit bigger of a trade. Again, we are worried about global demand and that will continue to weigh upon pricing. The Friday candle being so small doesn’t tell me anything other than we were heading into the weekend.

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