Crude Oil Price Forecast – Crude Oil Markets Continue To Suffer

WTI Crude Oil

The WTI Crude Oil market fell a bit during the trading session on Thursday, reaching down towards the $30 level before turning around and showing signs of life again. By doing so, the market looks like it is trying to find some type of bottom at a large, round, psychologically significant figure, but quite frankly with President Trump cutting back travel to and from Europe over the next 30 days, this will only add more pressure on this market. That being said, there is a gap above this still needs to be filled so I anticipate that there will be some type of event that makes that happen. In the short term though, I believe that the $42 level is the absolute ceiling of any bounce that we get.

Crude Oil Video 13.03.20

Brent

Brent markets also fell hard during the trading session on Thursday, reaching down towards the $32.50 level. At this point, the market looks likely to continue to see a lot of negativity in general, but if we do rally from here it’s likely that the market will see a bit of a ceiling at the $45 level, much like we have the $42 ceiling in the West Texas Intermediate Crude Oil market. At this point, the market is certainly oversold, and a relief rally is due but having said that it’s likely that there will be a significant bounce that gets sold into. With that, I think that the market is looking for some reason to rally, perhaps Saudi Arabia and Russia will make overtures. However, there is still a major concern about the demand picture.