Crude Oil Price Forecast – Crude Oil Markets Break Lows

WTI Crude Oil

The West Texas Intermediate Crude Oil market has broken below the $20 level during the trading session on Wednesday, showing signs of further weakness and it’s possible at this point we may be looking at the $17.50 level as a potential support level. Ultimately, the market could even go down to the $15 level after that. I think at this point it’s likely that we will see plenty of negativity in the market, because quite frankly the global market is delivering a “one-two punch” to the oil markets as economies have stopped, just when there was a huge glut of crude oil to begin with.

Crude Oil Video 16.04.20

Brent

Brent markets also have broken down pretty significantly, slicing through the $30 level which I have been looking at as “fair value” in the consolidation area between the $35 level on the top and the $25 level on the bottom. Ultimately, this is a market that looks very likely to continue going lower, with the $25 level underneath been massive support. A breakdown below that level opens up the door to the $20 level given enough time. Quite frankly, with the WTI market already breaking the lows, I think that the market will probably follow suit and try to play catch up. This is a very negative set up, and I believe at this point crude oil is nowhere near bottoming. This doesn’t mean that we are going to go to the $0.00 level, just that we are going to crash fairly low and try to build a base down there.