Crude Oil Price Forecast March 12, 2018, Technical Analysis

Christopher Lewis

Updated Fri, Mar 9, 2018, 10:16 PM

WTI Crude Oil

The WTI Crude Oil market rallied during the trading session on Friday as the February jobs number in the United States came out at 313,000. This is a very bullish sign, and it should continue to help with demand, however this is only a temporary boost in my estimation. I believe that the market will find plenty of exhaustion above, and I think that the oversupply of crude oil will continue to be a major issue as British Petroleum has reported a surprise jump in production at some of its most mature fields. Because of this, it is yet another reason to think that the oversupply issues in crude oil continues.

Crude Oil Inventories Video 12.03.18

Brent

Brent got a boost as well, mainly due to a falling US dollar. However, I think that looking at the longer-term charts shows just how negative the longer-term outlook for this market could be. I believe that we continue to be very choppy and that we will continue to see sellers jumping in on signs of exhaustion. Ultimately, I think that the $63.50 level underneath will be support, and I think that if we break down below there the crude oil market will unwind. I believe that a lot of what we are seeing right now is a reaction to the US dollar losing strength. That of course pushes oil much higher, as it is priced in US dollars. In general, I am bearish of this market, so I think that signs of exhaustion will continue to be jumped on by traders in the pits.