Crude Oil Price Forecast – Crude oil markets have a rough Friday

Crude oil markets fell rather hard on Friday as economic numbers came out of Germany and the United States both suggesting a potential recession. Beyond that, we may have simply had a bit of profit taking at the end of the week.
Christopher Lewis
Crude Oil daily chart, March 25, 2019

WTI Crude Oil

The WTI Crude Oil market fell rather hard on Friday, crashing into the 200 day EMA. That being the case, it’s a very bearish turn of events but there is still plenty of support underneath so I would be overly concerned about it. PMI numbers in the United States were rather week, and of course Germany continues to look as if it’s heading headlong into recession. That has people worried about the man for crude oil, but there are also stimulus programs going on in China and the Federal Reserve suddenly seems to look Lewis as well. With that, and the fact that OPEC has pushed back in its meeting to June, there should be production cuts in place to continue to drive prices higher longer term.

Crude Oil Inventories Video 25.03.19

Brent

Brent markets also crashed lower during the day, slamming into the $66.50 level, which is the 200 day EMA. By doing so, it looks as if we are simply continuing the overall consolidation, which extends down to the $65 level. At this point, I believe that the market is very likely to continue to see buyers underneath so therefore I’m looking for signs of support or a bounce that I can take advantage of. I have no interest in trying to short crude oil at all, Brent or WTI. I believe that eventually we will see buyers jump back into this market place. The $65 level looks to be essentially the “floor” in the short term.

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