Crude Oil Price Forecast – Crude Oil Markets Drift Lower Into The WeekendCrude oil markets have drifted a little bit lower into the weekend, as we continue to see a lot of problems when it comes to demand out there.
The WTI Crude Oil
The West Texas Intermediate Crude Oil market has fallen a bit during the trading session here on Friday, as we try to find some kind of bottom for this commodity. The demand for crude oil will of course be a major issue, so that something that should be paid attention to. With the coronavirus pandemic ripping through the world’s economy, people simply aren’t moving the way they once did. Furthermore, Saudi Arabia and Russia are both fighting a price war that is flooding the market with an absolute ton of supply. The $20.00 level needs to hold for any hope of a recovery in the short term. If it does not, this market goes much lower.
Crude Oil Video 30.03.20
Brent markets also fell during the trading session, as we are now below the $30.00 level. Brent of course is susceptible to the same pressures that the WTI market is, so it will move in congruence given enough time. I believe that the $25 level underneath will be crucial, and if it can hold it’s likely that it will be the beginning of a longer-term rally. What would really impose some type of return is if the price work it in soon. Because of this, something can happen over the weekend that will throw this market in one direction or the other and by a wide margin. Crude oil has a lot of political as well as economic pressures that it is dealing with right now, so it’s imperative to be cautious about your position size in these types of situations.