Crude Oil Forecast – crude oil markets explode to upside on Wednesday
WTI Crude Oil
The WTI Crude Oil market rallied rather significantly during the trading session on Wednesday, reaching towards the $71 level, an area that I see as significant resistance. That resistance area could be broken relatively soon and if it does happen, that could send this market towards the $72.50 level. The inventory was extraordinarily bullish, reporting a drawl down of 5 billion barrels as opposed to the expected 1 million barrels. Needless to say, oil reacted very violently to the upside after that report came out. It shows a certain amount of strength in demand, and with the looming Iranian sanctions, it’s very likely that we will continue to see a tightening of global supply. However, I would wait for some type of pullback to take advantage of.
Brent
Brent markets also rallied, pressing the $80 handle. I think at this point I think that it will offer resistance, but at this point it does look like we will manage to break above there eventually. If we do, then I think the market continued towards the $82.50 level and then the $85 level after that. Short-term pullbacks should be buying opportunities, especially near the $79 level that looks to be offering a little bit of a boost. If we were to break down below there, then I would start looking at the $78 level next. I don’t have any interest in shorting crude oil right now, it seems to be far too many bullish from both a fundamental and a technical standpoint over the last several days.
Crude Oil Price Forecast Video 13.09.18
This article was originally posted on FX Empire
