Crude Oil Price Forecast – Crude Oil Markets Continue to FightCrude oil markets have rallied a bit during the trading session again on Friday, as we continue to price and the possibility of Saudi Arabia and Russia negotiating.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has gone back and forth during the trading session on Friday with the jobs number looking so negative in America, but at the same time OPEC plus possibly getting together to discuss production cuts, something that the market desperately needs to see. After all, we have a situation where there is no demand and to simply flood the market with product doesn’t make much sense. The market is trying to price in the idea of less supply, but quite frankly this should be a nice opportunity to short this market at higher levels. I would be very interested in trying to short after a bigger pot because demand is not going to be fixed anytime soon. While it may be difficult to watch this right now, the real trade comes later when it gets too expensive.
Crude Oil Video 06.04.20
Obviously, the Brent market rallied significantly during the trading session on Friday as well, reaching towards the $35 level and for many of the same reasons that the WTI Crude Oil market is. At this point, I believe that the market will probably continue to see sellers on rallies, but I do think that the short-term momentum will probably be pretty strong to the upside. Ultimately, I think that the market will eventually find plenty of selling opportunities if you are cautious and patient about waiting for the set up. Yes, I recognize that the market is painful to watch go to the upside and sit on the sidelines, but experience has taught me when you get some type of pop like this you will certainly get an opportunity to sell at higher levels.