Crude Oil Price Forecast – Crude Oil Markets Stalling

WTI Crude Oil

The West Texas Intermediate Crude Oil market went back and forth during the trading session on Friday, as we have seen a significant amount of strength over the last couple of days, but quite frankly it was from a massively oversold condition. At this point in time, it looks as if the market has found itself to try to find balance, but I think at this point the $20.00 level should offer plenty of resistance, as it was previous support. Overall, this is a market that I think continues to see a lot of negativity and it is only a matter of time before oil starts to drop towards the $10 level again. I am fading this rally.

Crude Oil Video 27.04.20

Brent

Brent markets tried to rally initially during the trading session on Friday, but then turned around to pull back just a bit. At this point, it has much more obvious that there is resistance in this market, and it is interesting to consider that the Brent market is more of a global market, and still getting hammered. In the United States, the WTI market is losing out because they are running out of space. In the Brent market that is a factor as well, but much more importantly it is factoring the fact that there will be almost no demand for energy, at least not in the traditional sense and certainly not as much as it was just a few months ago. With the austerity and the lack of travel, crude oil has no business rallying for any significant amount of time.