WTI Crude Oil
The WTI Crude Oil market went sideways during the session on Tuesday, testing the $47.50 level. We broke above there, and reached towards the $49 level. We have had an explosive moved, and I think part of this has to do with the hurricane that is now heading towards the Gulf of Mexico. This could factor into the market, and I think that the oil markets may remain bullish for the short term because of this. The category 5 hurricane is going to cause disruption at best, and obviously those who work at rigs in the deep-water area will be evacuated. This will continue to cause issues for the market, but I still think that eventually we will come back to normalcy so I believe that the $50 level above should offer a bit of a ceiling.
Oil Forecast Video 06.9.17
Brent
Brent markets broke out to the upside as well, obviously for the same reasons. Also, the US dollar has been falling so that of course offers a little bit of extra pressure to the upside. I believe that the $55 level above is going to cause resistance, and I think that we will probably find buyers on dips below. If we stay above the $52 level, I have no interest in shorting, at least not anytime soon. I think that given enough time the market will continue to find buyers based upon the hurricane, and of course the “one-two punch” of hurricanes that we have seen in the United States. The damage from this hurricane could be extensive, and that could cause a serious problem. Longer-term, we still have an oversupply of crude oil but this certainly is helping the price and the short-term, and I think that’s how you have to look at this market over the next several sessions.
