Crude Oil Price Forecast – Crude oil markets rally a bit

WTI Crude Oil

The WTI Crude Oil market initially pulled back during the day on Friday but has recovered a bit as people begin to worry about Middle East tensions. After the attack on two separate oil tankers, it’s likely that traders are starting to price in some type of disruption in supply. Overall, I believe that the market is essentially in a five dollar range, between the $50 level on the bottom, and the $55 level above. If we were to break above there, then possibly we could go higher, maybe reaching towards the $57.50 level initially, on its way to the $60 level. On the downside, the $50 level underneath is massive support, so if we were to break down below there it could really start to unwind this market drastically.

Crude Oil Inventories Video 17.06.19

Brent

Brent markets went back and forth during the trading session as well but did find enough support to send the markets back to the upside. However, I think that the $65 level might be a bit overly resistive, so I don’t think we’ll get above there. On the other side of this trade, if we were to break down below the $60 level, we could unwind to the $55 level rather quickly as it would show a significant break down of demand in and oversupplied market. At this point, I think short-term traders will continue to bounce back and forth between the $60 level on the bottom and the $62.50 level on the top for short-term traders.

Please let us know what you think in the comments below