Crude Oil Price Forecast – crude oil continues to look soft

Crude oil markets continue to look soft during the Wednesday session, although as I record this we have a slight gain showing for both grades. Ultimately though, if this is as strong as it’s going to get, is very unlikely that we can rally significantly and continue to go much higher. · FX Empire

Christopher Lewis

Updated Wed, Jul 18, 2018, 11:02 PM

WTI Crude Oil

The WTI Crude Oil market has gone sideways overall, and I think that the market is trying to build up a little bit of confidence for rally. However, I think that rally will be a nice selling opportunity based upon the massive selling pressure that we have seen as of late. Any rally towards the $70 level, I would be more than willing to short this market. This would be confirmed by signs of exhaustion, and of course the large, round, psychologically important number will probably attract a lot of attention.

Brent

Brent markets also drifted sideways with a slightly upward tilt during the session, but we have recently broken down below a major uptrend line, and that of course is a negative sign, perhaps driving down to the $70 level after that. Rallies are to be sold, and I have no interest in buying this market until we clear the $75 level on a daily close, something that doesn’t look very likely to happen right now. Ultimately, I think that this market will continue to drift lower, but if we did break above the $75 level on a daily close, we could go back to revisit the $77 level at that point. The Saudi Arabians offering more supply to the market and the strengthening US dollar both will continue to put bearish pressure on this market. Beyond that, I think the least that you can expect is volatility here.