Crude Oil Price Forecast – Crude Oil Markets Rally Towards Resistance

WTI Crude Oil

The WTI Crude Oil market rallied significantly during the trading session on Thursday, reaching towards the $18.50 level, but quite frankly we still have plenty of resistance in the form of the psychologically and structurally important $20 level above. That is an area where I would expect to see sellers coming in and pushing this market back down, as it was major support previously. Signs of exhaustion in that region should be sold into, as the market will have to worry about people taking delivery for the June contract still as storage is running out.

Crude Oil Video 01.05.20

Brent

Brent markets also found buyers, as they approach the $27 region. There is a lot of resistance between here and the $30 level, so I will be looking to fade any type of rally that show signs of exhaustion in this area. This is a market that is bearish for the same reasons the WTI market is, and quite frankly although storage is not as bad worldwide, it is getting there as well, and will face the same problems that the Americans are facing as far as places to put crude. Beyond that, we have a lot of concerns when it comes to whether or not there will be global demand, so therefore oil will remain relatively weak. Longer-term oil is going to go a lot higher, but it has a lot of supply to get through before that becomes a possibility. Fading rallies should continue to be the way forward, and I do believe that we will revisit the lows in the next couple of weeks.