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Christopher Lewis
oil barrels

WTI Crude Oil

West Texas Intermediate Crude Oil markets went back and forth during the trading session on Monday, as we continue to see a lot of questions about what to do with the crude oil market. The $20 level underneath should be support underneath, as it is a large, round, psychologically significant figure, and of course the price war between Saudi Arabia and Russia continues to cause major issues. Furthermore, the global economy is falling off of a cliff, and it’s likely that the demand for oil is going to continue to be negative. At this point, there are some technical reasons to think we may get a bounce, but beyond that it seems to be very unlikely.

I would be especially interested in seeing the reaction to the $25 level, and the $27.50 level.

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Crude Oil Video 24.03.20

Brent

Brent markets also had a bit of a bounce from the $25 level, to turn around and show signs of strength. The market looks as if it is going to go towards the $30 level, where I would anticipate a bit of resistance. The market looks very likely to find plenty of sellers above but from a technical analysis standpoint, there is a gap that needs to be filled in both grades and some type of good news in the oil market will probably send it looking for that region. In the short term though, that seems to be very unlikely and therefore it’s something to keep in the back of your mind for longer-term trading more than anything else. That move would probably result from Saudi Arabia and Russia easing the price war.

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