Crude Oil Price Forecast June 14, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market initially fell again on Tuesday but bounced a bit and rose by the end of the day to test out the top of the consolidation area that we have been stuck in for several sessions. I believe we are going to get a bit of a bounce from here, but quite frankly I feel it’s only matter time before the sellers get involved. The first place I would look for selling pressure is the $47 level, followed very quickly by the $48 level. Quite frankly, I believe that oil is in serious trouble longer-term, as the glut continues and quite frankly we don’t have any signs of strengthening demand. On top of that, we have the US, Mexican, and Canadian drillers all operating at full tilt and expanding. With this, I believe that his only matter time before you get the opportunity to take advantage of selling pressure.

Oil Forecast Video 14.6.17

Brent

Brent markets initially fell as well but found the $48 level to be supportive enough to bounce the market toward $49. A break above the $49 level should send this market to the $50 level, where I would expect to see even more bearish pressure. I think that we will continue to go higher in the short-term, but that’s only going to be a nice selling opportunity from higher areas in which to take advantage of the oversupply issues that seem to be getting worse, not better. I have no interest in buying crude oil, and believe that as we continue to make lower highs, the trend is starting to shift to the downside for the longer-term. How low can we go? I have no idea but certainly I think there is more risk to the downside then.