Crude Oil Price Forecast September 13, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market had a slightly positive session on Tuesday, as we await the inventory numbers today. Because of this, I don’t read too much into the daily action but I think it’s only a matter of time before the inventory number has its influence. I suspect that the $49 level above will be resistive, and although we have had a bit of a relief rally due to the less destructive forces of hurricane Irma, thereby allowing demand for crude oil to remain, there is still a significant issue with pricing in the market. We are simply oversupplied of crude oil, and will continue to be so for the near future. OPEC is already trying to talk up the price of crude oil, suggesting that perhaps more production cuts could calm. However, the market is rapidly learning that OPEC doesn’t have the control it once did of supply.

Oil Forecast Video

Brent

Brent markets rallied as well, and quite frankly look a bit stronger than the WTI grade. A divergence of the 2 markets typically gets corrected, but the question then remains which one moves in which direction? I believe the Brent has a bit of a ceiling at the $55 level, so I don’t have an interest in trying to buy it here. I believe that any signs of exhaustion near that level would be a nice selling opportunity, but I’m the first to admit that if we broke above the $55 level, especially on a daily chart, that would be a very bullish sign. In the meantime, I believe we are going to continue to see extreme volatility, and a lot of confusion. Markets continue to show choppiness, and I don’t think that’s going to change anytime soon. Crude oil has become a short-term market.