WTI Crude Oil The WTI Crude Oil market continues to be very noisy, bouncing along the $55 region. We continue to suffer with oversupply, and therefore
The WTI Crude Oil market continues to be very noisy, bouncing along the $55 region. We continue to suffer with oversupply, and therefore it’s difficult to get a foothold on the market and rally enough to get away from it. Because of this, I think that this market is probably best left alone until we can get some type of impulsive move. If we can break above the $56 level, I think that the buyers will return and push much higher. However, if we break down below the $54.50 level, the market should fall from there. At that point, I would anticipate that the $53 level would be the next support level. As per usual, the US dollar will have it say as to what happens next, so if it rallies significantly we could see oil rollover as a result.
Brent markets continue to be noisy just above the $61.30 level, as we consolidate also. I think if we can break above the $62.30 level, then perhaps we could rally from here, reaching toward $64. This is a market that will of course have a lot of it dictated by the US dollar, geopolitical concerns with Saudi Arabia and Iran, and of course the oversupply issue. Because of this, this is a market that should continue to be very noisy, moving on headlines more than anything else. I think that the $60 level underneath is a bit of a “floor” in the market though, so break down below that level would be very significant, and probably have this market falling rather hard. If we do rally, it’s probably going to be more of a grind to the upside as we have seen a significant amount of volatility jump back into the marketplace.
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.