Crude Oil Price Forecast February 8, 2018, Technical Analysis

WTI Crude Oil

The WTI market fell hard during the session on Tuesday, as for the 2^nd week in a row we have seen a build in US crude oil inventory. This is a very bad sign, and as the market has dropped 3 ½% almost immediately, we are now pressuring a significant uptrend line. It looks as if we are going to break down below it, and that we are going to go looking towards the $60 handle. At this point, any time we rally, I suspect there will be people willing to jump into this market and start selling, as there is so much bearish noise in the market. Shale producers have gotten aggressive again, as one would expect with the high pricing that we had seen. Several hedge fund managers that I have spoken to have bailed on this market.

Brent

The Brent market has fallen apart during the trading session on Tuesday, as we have seen so much in the way of oversupply reenter the market that is only a matter of time before sellers get even more aggressive. It now looks as if we are trying to break down below an uptrend line that has been somewhat important, and we are pressuring the $65 level. At this point, I suspect that we are going to continue to see a lot of noise and pressure in this market, and if the US dollar starts to rally again, that could send this market much lower.

Crude Oil Price Forecast Video 08.02.18