Oil Price Forecast – Crude Falls into the Weekend

WTI Crude Oil Technical Analysis

The light sweet crude oil market has fallen significantly during the trading session to test a major confluence of support in the form of $90, the 50-day EMA, and an uptrend line.

All things being equal, this is a market that should continue to see a lot of back-and-forth action. This is an area that I think is important between $90 and $95. Of course, we’re heading into the weekend, so who knows what the headlines will be.

Jobs Report Miss on Friday

Part of what’s accelerating the downward pressure at the moment is the jobs report being so weak in the United States, suggesting less demand. But I don’t know that that’s the be-all and end-all here, as we of course have to worry about the Strait of Hormuz. The Brent market is also falling. It is breaking below the $100 level and has significant support in the form of the 50-day EMA and the $95 level, so I’ll be watching that.

This is a market that’s been climbing for some time and is in a bit of a channel. I’m looking for buying opportunities on these dips, so I have no qualms whatsoever about buying cheaper oil.

That being said, it is difficult to get long on crude oil heading into a weekend that could bring anything that we can imagine as far as headlines. I think this is probably something that should be thought about over the next couple of days, and maybe Monday we’ll have more of a clear picture.

The situation in Iran just is never going to end, it seems, and that, of course, has a major influence on what’s going on here.

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