WTI Crude Oil and Natural Gas Forecast - 15 February 2016

WTI Crude Oil

The WTI Crude Oil market rose during the course of the day on Friday, testing the $30 level. Breaking the top of the hammer from the Thursday session is a bullish sign, but quite frankly there is more than enough noise above in order to turn this market back around and start pushing us lower again in my opinion. I think that it is only a matter of time before sellers come back into this marketplace, and as a result I am a seller on the very first signs of exhaustion as we are without a doubt in a very massive downtrend in this marketplace.

Keep in mind that supply is far stronger than demand, and having said that it’s very likely that this market will continue to struggle going forward. This is a bit of a relief rally, but that’s it. I have no real doubts that this market will continue to go even lower.

Oil

Natural Gas

Natural gas markets initially tried to rally during the course of the session on Friday, but found enough resistance above the $2.00 level to turn things around and form a shooting star. Because of this, the market looks as if it could go lower, but we need to break down below the bottom of the range for the session to do so. The market will more than likely reach down to the $1.70 level, but it might take a bit of time to get down there.

Demand for natural gas simply is not strong enough to take out the supply, and quite frankly that’s not going to get any better as we are starting to get towards the end of winter in the northeastern part of the United States. Yes, there will still be cold temperatures but at the end of the day we are already through the worst part of the heating season, which was an absolute dud as far as natural gas suppliers are concerned.

NatGas

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.