Crude Oil Price Forecast – Crude Oil Markets Continue Negative Pressure

WTI Crude Oil

The West Texas Intermediate Crude Oil market has fallen during the trading session on Monday to kick off the week, which of course isn’t a huge surprise considering that there is a serious lack of demand out there. While the media is going on and on about the May contract price, the reality is that there are a lot of technical factors with that contract, not the least of which is that we are closing at out and rolling over to June. Because of this, I will focus on this contract and it looks to me as if the $27.50 level is going to continue to offer a bit of resistance. At this point, I am fading short-term rallies and aiming towards the $20 level with the $30 level above being the ceiling. Fading rallies should continue to work.

Crude Oil Video 21.04.20

Brent

Brent continues to reach towards the $25 level, an area that has been important more than once. Ultimately, this is a market that has a lot of negativity involved in it, because quite frankly we are running out of places to store crude oil and of course demand is almost nothing at this point considering that the economies around the world continue to see a lot of demand destruction and of course locking down. At this point, the crude oil market will continue to struggle quite drastically, as the oversupply issue is something that is going to take a significant amount of time to work through. I believe the $35 level is the “ceiling”, just as the $25 level is a “floor.”