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Crude Oil Price Forecast – Crude oil markets continue to drift lower

Crude oil markets drifted a bit lower during the trading session on Monday as Labor Day in the United States would have had people focusing more on holidays than trading. That being the case though, there were some minor electronic traders out there and they continued to sell.
Christopher Lewis
Crude Oil daily chart, September 03, 2019

WTI Crude Oil

The WTI Crude Oil market broke below the $55 level during the trading session on Monday in relatively thin trading. At this point though, it’s a simple continuation of the negative pressure that we have seen for so long so it makes quite a bit of sense that we would continue to see this market drift. I think that crude oil will continue to get hammered mainly because there is a serious lack of demand out there. Global economies are slowing, and therefore it makes sense that crude oil demand drops and thereby pricing as well.

Crude Oil Video 03.09.19

Brent

As you can see on the chart, I have formed a symmetrical triangle that we have now broken through to the downside. This is another reason to think that the crude oil markets may fall, considering that the massive triangle has been so obvious. At this point I think it’s only a matter of time before we continue to fill out that destiny. The $55 level underneath would be a nice target, and if we can break down below there I think we could go much further. All things being equal, I think it’s only a matter of time before we test that area, as it is such a large, round, psychologically significant figure and it is of course an area that will attract a lot of attention. I think at this point it’s obvious that the markets simply cannot hold themselves out.

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