Crude Oil Price Forecast – Crude Oil Markets React To Noisy Headlines

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially gapped higher to kick off the trading session and reach towards the $25 level before pulling back significantly. As headlines continue to come out about the OPEC cuts, the market is trying to digest whether or not they are going to be enough, let alone the fact that demand it has fallen through a floor. Looking at this chart, I suspect we are simply trying to carve out a consolidation area, perhaps reaching between the $20 level on the bottom and the $30 level on the top. All things being equal, I think this market bounces around in that area.

Crude Oil Video 14.04.20

Brent

Brent markets went back and forth during the trading session on Monday as well, doing much the same. We gapped higher, dropped immediately, and then bounced from the $30 level. In this market, I believe that we are going to try to go back and forth between the $35 level on the top and the $25 level underneath. $30 of course has a certain amount of psychological importance to it, and this is essentially “fair value” at the moment. That being said, much like the WTI market, there is a gap above that will eventually get filled. I think at this point, this is a market that will continue to chop around, trying to form some type of bottoming pattern. That’s a longer-term process, so I think we’re going to be in this general $10 range for a while.