Crude Oil Price Forecast – crude markets stabilize on Friday
WTI Crude Oil
The WTI Crude Oil market initially when sideways during the trading session on Friday but then turned around to show signs of life again. The $70 level of course is very important from a psychological standpoint, but quite frankly the structural standpoint isn’t overly compelling at this point. I think that rallies would make sense as we have sold off so drastically, but I think it’s only a matter of time before the sellers get involved and start shorting. Quite frankly, I believe between the $73 level and the $75 level we will see a lot of supply.
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Brent
Brent markets bounced rather nicely after falling during the trading session on Friday, testing the uptrend line that has been so crucial for quite some time. I think that this bounce is a good sign, but it’s not until we break above the $75 level that I would put the money to work. At that point, I suspect that the $77 level will cause a bit of resistance as well, as I see so much in the way of supply. I think short-term buying is possible, but we are going to make a serious go at this uptrend line, and if we can break down to a fresh, new low, extensively below the $73 level, then I think the market probably unwinds down to the $70 handle after that. Expect volatility, but it certainly looks as if there are a couple of clear levels to pay attention to.