Crude Oil Price Forecast – crude oil continues to look soft

WTI Crude Oil

The WTI Crude Oil market continues to drift lower towards the $45 level, an area that of course will cause a bit of support and if you have been watching us here at FX Empire, you know that I have recently said that a break below the $50 level should signal another five dollar loss, as we had been consolidating between $50 and $55 above. If we can break down below the $45 level, then I think we could go looking towards the $40 level. In the short term, I think that rallies are going to be sold at the first signs of exhaustion.

Brent

Brent markets broke below the $55 level and look even worse than the WTI market. The $60 level above is massive resistance as it was previous support. I think at this point; the market will more than likely go down to the $50 level which of course is psychologically important. Brent continues to find plenty of Sellers and it’s not until we break above the $64 level that I would be interested in buying. Obviously that can change at lower levels, but right now I think lower levels would be the key phrase to take out all of this analysis. Sell rallies, expect $60 to be resistance, and until there is more clarity and strength with global growth, I believe that petroleum in general is going to continue to suffer. Quite frankly, there isn’t much OPEC can do about this at this point.