Crude Oil Price Forecast – Crude Oil Markets Continue to Hang On To Vital LevelsThe crude oil markets broke down a bit during the trading session on Wednesday, but a more bullish than anticipated inventory number out of the United States has helped things a bit.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has broken down to a fresh, new low but then bounced enough to form a bit of support. It looks as if somebody out there is hanging onto the $50 level desperately, perhaps OPEC is starting to get involved in the market again. At this point, the inventory number and the US states was better than anticipated, although it was still a build. There was a refinery explosion on the West Coast which may have helped as well, but at this point if we bounce from here it’s likely that we will see sellers above. Ultimately, if we break down below the bottom of the candlestick, then we are likely to go down to the $47.50 level, possibly even the $45 level.
Crude Oil Video 27.02.20
Brent markets also have broken down initially during the trading session on Wednesday, testing the lows again but then bouncing at that point. Ultimately, this is a market that is very likely to find sellers above so I like the idea of showing signs of exhaustion, so that I can start selling yet again. Ultimately, if we break down below the bottom of the candlestick for the session on Wednesday, then we should continue to go down towards the $50 level. At this point, the market is very bearish, so rallies are to be faded as the demand for crude oil will continue to suffer due to the coronavirus and a slower global economic situation anyway. Crude oil continues to get hammered not only due to demand issues, but a stronger US dollar has not helped either.