Crude Oil Price Forecast February 15, 2018, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market has been very noisy over the last couple of days, showing signs of stability. The recent selloff has been rather rapid, but I think that the market will eventually go looking for sellers above again. I think that the $60 level will of course attract a lot of attention, but I think it goes beyond there and towards the $62 handle as it is where the previous uptrend line is situated at. Longer-term, I anticipate that the market will probably reach down to the $55 level and beyond. Although we are heading towards the so-called “driving season” in the United States, the reality is that the Americans are pumping out so much crude oil now that oversupply has become a massive problem.

Crude Oil Price Forecast Video 15.02.18

Brent

Brent markets rallied a bit during the day as well, but again I think that it is more of a dead cat bounce than anything else. The $62 level looks to be supportive, but I think we will break down below it over the longer term. In the meantime, I anticipate that the $65 level is going to be resistance, and that any time we come close to that area there should be plenty of sellers. If we were to break above that area, it would change quite a few things, but right now I don’t think that’s likely to happen. This will be especially true if the US dollar rallies, but I don’t think that the sellers need the excuse of currency to short again.