Crude Oil Price Forecast – Crude oil markets rally after bullish inventory figures

After extraordinarily bullish figures out of the United States, the oil markets rallied quite significantly. There were 10 million barrels withdrawn from supply, and that of course is much more strong than people would have thought. That being said though, there still a lot of work to do.
Christopher Lewis
Crude Oil daily chart, August 29, 2019

WTI Crude Oil

The WTI Crude Oil market has pierced the downtrend line after the strong inventory figures coming out of the United States, but it is starting to sell off a bit midday. That being the case, it looks as if we still have massive resistance above, and that it’s likely that we will roll over. Remember, even though inventories might be strong out of the United States, the reality is that the rest of the world is slowing down. We also see the US dollar strengthening in general, so that helps the downward pressure as well. Ultimately, this is a market that looks like it will go to lower levels and try to fill the gap.

Crude Oil Price Forecast Video 29.08.19

Brent

Brent markets rallied initially during the trading session on Wednesday, gapping to the upside before rolling right back over. It looks as if Brent is going to continue to find plenty of selling pressure above, as we are trying to form a shooting star. Beyond that, we have the 50 day EMA above that will continue to crush downward pressure. I think at this point it’s likely that we are going to continue to see a lot of downward pressure due to the fact that Brent is much more of a global grade of oil than the WTI grade. With that, this is going to lag when it comes to the WTI oil in any type of rally. It’s very likely that we drop back towards the $58 level.

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