Crude Oil Price Forecast – Crude Oil Markets Jump

WTI Crude Oil

The West Texas Intermediate Crude Oil market has broken significantly during the trading session on Thursday after a tweet by Donald Trump suggested that Saudi Arabia, Russia, and the United States were all ready to start talking about crude oil. Furthermore, Saudi Arabia is supposedly calling an emergency meeting of OPEC + to discuss oil production. If this is true, then it’s very likely that Saudi Arabia just folded in the price war. That being said though, the real issue isn’t so much the oversupply of crude oil in the market, but the fact that nobody is using it.

Crude Oil Video 03.04.20

Brent

Brent markets rallied significantly during the trading session as well, breaking above the $30 level initially. Markets are starting to stabilize after that as people will need to figure out whether or not there is any way for this to drive price higher, or if this is simply a situation where it’s a short-term relief rally. The jobs number coming out on Friday of course will have significant influence on this market as well, so look at rallies with suspicion, but if something does get worked out both of these grades of crude oil will go looking to fill that gap above. Raking above there is an impossibility until the world economy comes back, something that is going to take a significant amount of time. Furthermore, there are a lot of moving pieces at this point so it’s difficult to risk a lot of money on this type of trade. Once we get the weekly close, there is probably a much more significant trade waiting to happen.