Crude Oil Price Forecast – Crude Oil Markets Get Hammered

WTI Crude Oil

The West Texas Intermediate Crude Oil market has collapsed during the trading session on Tuesday as traders came back from Labor Day in the United States. Ultimately, this is based upon a Saudi oil minister suggesting that they were going to start selling oil at lower prices, due to a serious lack of demand. This of course sent a shudder through the markets, which had already been falling. We are well below the $40 level and now this is a “sell the rallies” type of market again. Ultimately, this is a market that probably goes looking towards $30 a barrel given enough time. $35 level between here and there will more than likely be a bit reactive as well.

Crude Oil Video 09.09.20

Brent

Brent markets also got absolutely crushed, as one would expect. The $37.50 level between here and there offer support, but probably from a psychological standpoint more than anything else. After that, the market is likely to go down to the $35 level and so on. I believe that you are looking at a scenario that you should be selling rallies over here as well, and this will be especially true if the US dollar strengthens. That being said, this is also a demand concern more than anything else so at this point you are better off looking for an opportunity to short anything that looks like short-term bullishness in a market that clearly has no business being bullish. There is the old expression “the Emperor has no clothes”, and I think that it is quite telling here.

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