WTI Crude Oil And Natural Gas Forecast – March 31, 2016

WTI Crude Oil

The WTI Crude Oil market initially tried to rally during the course of the day on Wednesday, but we found enough resistance near the $40 level to turn things back around and form a shooting star. The shooting star of course is a negative sign, so it’s very likely that we could fall from here. If we break down below the $38 level, the market should then reach the $36 level below there, and perhaps even the $34 level below that. I don’t have any interest whatsoever in buying this market right now, because I believe that there is going to be a significant amount of resistance at the $40 handle. Also, there is a massive amount of supply out there, and that is going to put quite a bit of pressure on this market.

Natural Gas

The natural gas markets went back and forth during the course of the session on Wednesday, as the $2 level offered enough resistance to keep the market down. With this, the market could very well turn back around and break down below the bottom of the range during the day. Ultimately, the market will more than likely reach towards the $1.80 level, and then possibly the $1.60 level. With this, rallies should continue to be selling opportunities, and I believe that the area above the $2 level is going to continue to be very difficult to break above.

After all, the supply in the natural gas markets is so strong right now that we don’t even have much in the way of storage at this point. Because of that, I’m looking for an opportunity to start selling yet again and I do not have any interest whatsoever in buying this market as it continues to look very negative overall, and most certainly over the longer term going forward.