Crude Oil Price Forecast – Crude Oil Markets Break Major Barrier

WTI Crude Oil

The WTI Crude Oil market broke down significantly during the trading session on Tuesday, breaking below the psychologically and structurally important $20 support level. Ultimately, this is a market that will continue to see a lot of issues, as the market has been so drastically crushed. The market went as low as just below the $12 level before Donald Trump tweeted that he was instructing the government to figure out how to bail out the energy companies in the United States. While this is not going to be anything that curbs oversupply in the short term, it does perhaps settle down the credit markets which will have a bit of a knock on effect as to risk appetite. Overall, this is still a market that should be sold on short-term rallies.

Crude Oil Video 22.04.20

Brent

Brent markets broke through the $25 level to look rather bearish as well, and even sliced below the $20 level at one point. The worldwide demand for crude oil has fallen through the floor, and it makes sense that Brent would be no different. At this point, it’s very likely that we continue to see negativity and selling opportunities on short-term rallies. The $25 level should now offer a certain amount of resistance, and I think it will take a bit of momentum to finally break back above the $30 a barrel level. In fact, I don’t see that happening anytime soon. Look to short-term charts for signs of exhaustion that you can take advantage of, as we will almost certainly revisit the $20 level yet again.