WTI Crude Oil And Natural Gas Forecast – Wednesday, August 22

WTI Crude Oil

The WTI Crude Oil market rallied rather significantly during the day on Wednesday, reaching above the $66 level. However, we gave back quite a bit of the gains, and by doing so it looks as if we are going to finish below that level now. This is a market that continues to go back and forth, but obviously, the falling US dollar during the day helped. I think that overall, the market will probably pull back a little bit here, but if we were to break above the top of the range during the trading session, extensively the $66.50 level, then I think WTI goes looking towards the $67.50 level. It will be influenced by the value of the US dollar, and of course various economic signals and trade war statements over the next several days. The one thing you can probably count on is a lot of volatility.

Natural Gas

Natural gas markets gapped higher at the open on Tuesday, breaking above the $2.95 level. By doing so, we broke into significant resistance, which extends to the $3.00 level. That level brings in a lot of selling and supply from what I see, so I think that the market will rally slightly, only to turn around and fall again. If we do break above the $3.00 level, that would be a very strong sign and could send this market much higher. However, we have not seen the market be able to do that yet, so I think the safe trade is probably selling signs of exhaustion as they appear. If we can break down below the $2.90 level, we could find ourselves going down to the $2.70 level next.