Crude Oil Price Forecast – Crude oil markets break down

WTI Crude Oil

The WTI Crude Oil market broke down a bit during the trading session, breaking below the longer-term trend line that I have been following after the inventory number came out much softer than anticipated. The inventory numbers continue to miss in the United States and at this point oil needs the United States to start demanding more or it’s in serious trouble. There are a lot of concerns out there when it comes to the global demand picture, and a slowing economy in places like Germany and China is not helping the situation. Beyond that, we have completely wiped out the drone strike gap that formed a couple of weeks ago. In other words, there’s nothing good on this chart. At this point, I suspect that crude oil is more likely than not heading towards the $51 level.

Crude Oil Price Forecast Video 03.10.19

Brent

Brent markets fell pretty significantly during the trading session on Wednesday, as the inventory number missed, driving all grades of crude oil lower. We are well below the trend line that is currently so prominent in the market, and now it looks as if the market may go looking towards the $56 level underneath which has been a low. The market continues to struggle in general, and therefore I think what we are about to see is rally sold every time they happen, so short-term “fade the rallies” strategies should continue to work. I see the 50 day EMA above at the $61.62 level as a major resistance.

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