Crude Oil Price Forecast – Crude Oil Markets Continue to Suffer

WTI Crude Oil

The West Texas Intermediate Crude Oil market fell again after gapping lower on Monday. The market continues to test the crucial and psychologically important $20 level, an area that of course attracts a lot of attention. By breaking down below there, it opens up the possibility of $17.50, and then possibly even as low as $15 after that. Ultimately, this is a market that I think continues to favor selling the rallies, with a $25 level being an obvious resistance barrier. Until Russia and Saudi Arabia knock it off, it seems very unlikely that oil will get a bid.

Crude Oil Video 31.03.20

Brent

Brent markets also are following the same trajectory, and that is significantly lower. Looking at the chart, the $25 level underneath could get broken, and if it does it all open up the possibility of $22.50 underneath, an area that could cause a slight bounce but at this point it’s obvious that crude oil should be traded the same way regardless of the grade that we are talking about here, simply selling rallies that show signs of struggling. As low as this market is, it certainly looks as if it is going to go lower. With a significant lack of demand out there and of course Saudi Arabia and Russia flooding the market with supply, things look very negative for crude oil to say the least. In fact, I anticipate that if crude oil breaks down again, it will probably weigh upon the stock market as well.