Crude Oil Price Forecast – Crude Oil Markets Recover Slightly

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gapped higher to kick off the trading session on Wednesday, and then pulled back to find even more buyers just above the $10 level. Quite frankly, this is a market that I think has gotten ahead of itself although one of the biggest problems that we will run into is that people simply have nowhere to put all of the extra oil. From a technical analysis standpoint, I believe that the $20 level above will offer a bit of a “ceiling”, as it is a previous support level that should come into play and offer a significant amount of resistance. I would be a seller if we get anywhere near there, as the fundamentals for crude oil are absolutely horrible.

Crude Oil Video 23.04.20

Brent

Brent markets also rallied a bit during the trading session on Wednesday, after initially dipping to a fresh, new low. Ultimately, this hammer suggests that we could get a bit of rally, but I think in this market we will see a significant “ceiling” near the $25 level which was the floor and the market previously. I believe the Brent will probably do a little bit better, as there is more storage from a global standpoint than there is in Cushing, Oklahoma. However, this is a market that I think you should be fading rallies, and perhaps awaiting a day or two before shorting might be the best way to go. I have no interest in buying oil contracts in either grade at this point, the demand simply will not be there anytime soon.