Crude Oil Price Forecast – Crude Oil Markets Continue To Grind LowerCrude oil markets broke down a bit during the trading session Monday to kick off yet another potentially negative week. There are still a lot of concerns about demand coming out of China, and therefore we are seeing negativity.
WTI Crude Oil
The WTI Crude Oil market has broken down again during the trading session on Monday, as we continue to see a lot of negativity. Ultimately, this is a market that has broken through the crucial $50 level previously, and now it looks as if it’s ready to continue pressing lower. With crude oil falling apart the way it is, it’s difficult to imagine a scenario where you would step in and start buying, and it is now reported that Russia and OPEC are not going to have a meeting anytime soon, and that suggests that there will be further cuts of any note in the short term. Furthermore though, with China demanding a lot less crude oil, there isn’t a whole lot that OPEC could do anyway.
Crude Oil Video 11.02.20
Brent markets also broke down during the trading session and quite frankly look worse than the WTI grade. The $55 level has been pierced to the downside, and it now looks as if we have further to go, perhaps reaching towards $50 a barrel. The $57.50 level above continues offer resistance, so I think rallies at this point will continue to be sold into, as there is no real demand from what I see at this point. It’s not until we break above the $57.50 level should you consider trying to pick up crude oil for a cheap bargain. It looks on both the fundamental and technical side that this market is still going to continue going lower, so therefore selling at this point is probably the only thing that can be done.
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