Crude Oil Price Forecast – Crude Oil Markets Crater Again

WTI Crude Oil

The West Texas Intermediate Crude Oil market plunged again during the trading session on Monday, as we continue to flirt with the idea of breaking through the $30 level and staying there. There are several factors in the crude oil market moving at the same time, not the least of which of course is that the global economy has stopped. This is a temporary thing, but we had seen demand dropping previously, so the question is whether or not demand is ever going to pick up the way that producers would like? I do think that the gap above gets filled eventually, but we aren’t near that yet. In the short term, it’s simply a matter of fading rallies, with the particular interest at the $34 level.

Crude Oil Video 17.03.20

Brent

Brent markets underperformed the WTI market as Saudi Arabia has suggested that it could last much longer in a price war that a lot of people expected. At this point, Brent is definitely much softer than WTI, mainly because most of the stronger parts of the world economy tend to run on WTI. The Brent market is highly sensitive to the price war between the Saudi and Russian governments, so that is going to be Ground Zero for that. At this point, Brent looks as if it is going to try to break down below the $30 level and reach towards $27.50. At this point, any time this market rallies it should be a selling opportunity, as it simply cannot get out of its own way.