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Crude Oil Price Forecast – Crude Oil Markets Give Up Early Gains

Crude oil markets initially tried to rally during the trading session on Friday but have also given those gains right back up. This shows just how soft the crude oil market is.
Christopher Lewis

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially rallied during the trading session on Friday but gave back the gains once the market hit the $34 level. By turning around the way it has, the market is likely to test the $30 level underneath, which would be a large, round, psychologically significant figure and an area that has been supportive for most of the week. If we break down below the support level, then we will start testing the $20 to $30 range, which of course is something that’s almost difficult to read. However, the market has seen so much in the way of demand destruction and an oversupply as the price war rages, it’s difficult for gains to be kept.

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Crude Oil Video 16.03.20

Brent

Brent markets rallied a bit during the trading session on Friday, to reach towards the $35 level. However, unlike the WTI grade, Brent Capt. most of its gains. The market breaking above the $35 level, the market could very well go much higher. At that point, the market would target the $40 level, and then perhaps try to fill the gap that extends all the way to the $45 level. I typically get filled, but it doesn’t necessarily mean that it happens right away. At this point, fading rallies will still be the way to go forward. At this point, the $30 level underneath would be significant support, as it is a large, round, psychologically significant figure. If the market were to break down below the $30 level, then it’s possible that we go down to the $25 level next.

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