Crude Oil Price Forecast – crude oil markets show strength on Friday

Crude oil markets show strength during the day on Friday, as we continue to see buyers jump in around the $50 level. OPEC is starting to show signs of a potential production cut deal, and because of this it’s likely that we could continue to go higher. Perhaps we have found a bit of a bottom?
Crude Oil daily chart, December 10, 2018

WTI Crude Oil

The WTI Crude Oil market initially fell during the trading session on Friday, and then bounced hard to reach towards the $54 level. I think that there is a significant amount of resistance at the $55 level, and if we can get above there I think that the market continues to go to the $57.50 level. I think short-term pullbacks continue to offer plenty of buying opportunities, and value. If we break down below the $50 level, it could send this market much lower, perhaps down to the $45 handle. I think at this point though, we may have found a bit of a bomb and crude oil could start to take off.

Crude Oil Inventories Video 10.12.18

Brent

Brent markets also have found a bit of buying pressure underneath at the $60 handle, and if we can get some type of production cut that should help the crude oil market quite drastically. Overall though, I would expect a lot of noise, but if we break above the $65 level that could open the door to $67.50, perhaps even the 50 day EMA which is roughly at the $70 handle. If we turn around and broke down to a fresh, new low, then we could send the market down to the $55 level. Overall though, I think that we probably are going to see a bit of a rebound after the massive amounts of selling that we had, if nothing else just to collect profits.

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