Crude Oil Price Forecast – crude oil plummets on WednesdayCrude oil markets fell rather hard during the day on Wednesday, reaching down towards a significant support though, after the crude oil inventory number came out less bullish than anticipated. However, most of the action was ahead of the announcement, so I believe this may have been a technical move more than anything else.
WTI Crude Oil
The WTI Crude Oil market fell rather significantly during the trading session on Wednesday, reaching down towards the vital $67 level before finding buyers again. This was after the announcement of a drawdown of inventory, but less of a drawdown than originally thought in America. That being the case, I’m watching the $67 level very closely as it is important support that we have seen more than once. I think there are more than enough global tensions to keep somewhat of a bid in the crude oil market, so be advised that the $67 level will be very difficult to break down below. If we bounce from here, that would sustain the range bound action that we have seen between this level and the $70 level. Otherwise, we probably drop down to $66 looking for the longer-term trend line.
Brent did a very similar thing during the day, reaching down towards the $72.50 level. It is starting to show signs of life again near this level, and we may see a turnaround. However, I would be very small with my trading position if I did decide to go that route. I see support underneath at the $72 level, so it will be very interesting to see if this area holds. If it does, then we simply continue to consolidate as we have been doing for some time. Again, I think there’s enough geopolitical concerns out there to keep this market afloat, a lease that these low levels.