Crude Oil Price Forecast June 8, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market went sideways during most of the session on Wednesday, but then broke down rather significantly as the Crude Oil Inventories announcement in the United States came out much more bearish than anticipated. Originally thought to be a drop of 3 million barrels, we ended up getting a gain of 3 million barrels instead. This is a significant change in attitude, and it shows that regardless of what OPEC does, they have no power to bring down the stockpile of crude oil. Remember, the United States and Canada are both pumping out more oil now than ever, and OPEC is rapidly becoming somewhat irrelevant. I think rallies at this point in time continue to be selling opportunities, and $47 now should be massively resistive. Breaking below the $46 level is significant, but I think that there is always a little bit of a bounce back after a fairly impulsive move like this.

Crude Oil Price Forecast Video 08.6.17

Brent

Brent markets also breakdown, slicing through the $49 level, so if we can bounce to that area, I think the sellers will jump back into what is an obviously very bearish market. I think that given enough time we should breakdown below the $48 level again, and then reach towards $45. I have no interest in buying this market, it is very negative and of course has seen a massive amount of selling over the last several weeks. I think that the bread market will continue to suffer at the oversupply of crude oil around the world, and perhaps even more importantly: lack of demand. No matter what OPEC does, it cannot affect that part of the equation, and therefore crude oil will continue to fall longer term. I have no interest in buying.