Crude Oil Price Forecast – crude oil markets get hammered again on Friday

WTI Crude Oil

The WTI Crude Oil market broke down significantly during the trading session on Friday, losing roughly 7% in the middle of it. This is a market that looks like it is going to test the $50 level, which of course has a certain amount of psychological importance to it. I think at this point it’s likely that we will get a bit of a reaction from this level, but right now we don’t have any signs of strength or reliability on these rallies. I believe that the $55 level above will continue to offer resistance, so rallies will be faded.

Brent

Brent markets fared even worse from a percentage base during the day on Friday, slicing through the $60 level. Now that we have broken down below the $60 level, and it now looks like we are going to go to the $55 level after that. I believe that rallies at this point will probably continue to start selling off at various points, and the $65 level also looks to be massive resistance. I think that the market could continue to go much lower based upon the viciousness of the selloff, but obviously we are in and oversold condition. Because of this, I would expect the occasional rally, but those rallies will continue to attract a lot of sellers as we are starting to worry about global growth, and of course a lot of the reason this market went higher, the potential cutting off of oil from Iran, has now been wiped out.