Oil Forecast December 13, 2011, Technical Analysis

Light Sweet Crude

The CL contract had a rough day on Monday as the commodities markets in general got hit hard. The rise in the value of the Dollar has an adverse effect on most markets, and may continue to do so as the Euro falls apart. The oil markets do have support areas to be mentioned, the most important one is at $95. This area is where we think this market is heading. With this in mind, short-term traders can sell on a break below the Monday lows for a couple of Dollars in this market. Otherwise, we should see a continuation of the recent range bound trend.

Brent

Brent looks even weaker than the CL contract at the moment, even if it is still range bound at this point. The $105 level below should be support still, and because of this we feel any selling opportunities should continue to be of the short-term nature. If that level gets violate though, we will be seeing $100 in a very short time.