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Christopher Lewis
Crude Oil weekly chart, December 02, 2019

WTI Crude Oil

The WTI Crude Oil market initially tried to rally but continues to find resistance near the $59 level. It rolled over from there and then accelerated to the downside at the end of the week to reach towards the uptrend line. We are still above the bottom of the hammer from the previous week, so while it is not technically a selling signal, it certainly doesn’t look good. From a longer-term standpoint we are simply bouncing around between two levels, and with the OPEC meetings next week, traders will be paying attention to those headlines. The OPEC nations have been going forward with production cuts four months, and now they are expected to extend those.

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Crude Oil Inventories Video 02.12.19

Brent

Brent markets continue to see resistance above, and then broke down towards the $61 level. At this point, the market is very likely to continue to see a lot of choppy volatility, but it looks to me as if the $65 level above is massive resistance that is going to be difficult to break through. Quite frankly, OPEC will probably have to extend cuts in order to do that. Otherwise, to the downside we have the $55 level underneath that causes a significant amount of support, so breaking through there would be rather bearish, perhaps breaking the oil market down to the $50 handle. However, that doesn’t seem to be very likely at this point and I do anticipate that the downside is probably limited by that support level underneath. Longer-term traders will continue to be stuck in a range waiting to see what OPEC does.

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