Crude Oil Price Forecast – Crude oil markets get hammered

The crude oil markets broke down significantly during the trading session on Wednesday, as several central banks around the world cut rates overnight. Because of this, there are serious concerns about the possibility of global growth.
Christopher Lewis
Crude Oil daily chart, August 08, 2019

WTI Crude Oil

The WTI Crude Oil market broke down rather significantly during the trading session on Wednesday again, as we had the central banks from New Zealand, India, and Thailand cut rates. This has people worried about the potential of global growth, which seems to be all but dire at this point. Market participants obviously extrapolate that out to the idea of a serious lack of demand for crude oil and energy overall. With this, we have reached towards the $51 level, which is the beginning of support down to the $50 level. All things being equal, this is a market that if we were to break down below the $50 level, we would then collapse from there.

Crude Oil Price Forecast Video 08.08.19


Brent markets broke down below the $59 level, which I have marked as a “zone that extended to the $60 handle” during the previous session. With this, now that we have broken through that level it looks very likely that we continue to go much lower, perhaps down to the $55 level. If we can break down below that level, this market will fall down towards the $50 level next.

As central banks around the world cut interest rates, this tells you that there are lot of concerns out there, and I think at this point it’s almost impossible to believe that the demand for crude oil will pick up in that type of situation. All things being equal, I do believe that crude oil will go lower but we may get a short-term bounce. I more than willing to sell those rallies at previous support levels.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.