WTI Crude Oil And Natural Gas Forecast – March 2, 2016

WTI Crude Oil

The WTI Crude Oil market rose again during the course of the day on Tuesday, but remains below the $35 level. I recognize that we are starting to see a real fight coming out of this market, but at the end of the day I do not see how we rally for much farther going forward. After all, the most important thing to keep in mind is that US shale producers will not hesitate to flood the market at $40 a barrel. This has been said recently, and that of course will keep quite a bit of a lid on this market.

On top of that, it’s very likely that the US dollar is going to continue to strengthen. Sooner or later, that works against the value of crude oil, as well as other commodities. Why don’t necessarily have a candle to start selling here, I would not hesitate to sell a resistive candle or break down below the bottom of the range for the Tuesday session.

Natural Gas

Natural gas markets rose during the course of the session here on Tuesday, filling the gap that had formed at the open on Monday. That being the case, the market looks like it could turn right back rows or selling off now, which is exactly what I would expect. At this point time, I don’t care how high natural gas rallies, I believe it offers an opportunity to sell yet again. Obviously, the $2 level will more than likely be very resistive due to the fact that it is a large, round, psychologically significant number, but also the fact that it had been so supportive in the past. I think a rally is good at this point in time, because it gives us an opportunity to build up momentum to the downside yet again. I have no interest in buying.