Crude Oil Price Forecast – Crude Oil Markets Testing Major Support

WTI Crude Oil

West Texas Intermediate Crude Oil markets have gapped lower to open up the trading session on Monday, as there are a lot of concerns coming out of China that perhaps there is going to be a slowdown in demand when it comes to the world’s largest market. That being the case, it’s very likely that concerns about demand will continue to be front and center. With the coronavirus shutting down so many factories in China, it’s not a huge surprise to see that we have been selling. At this point, we are testing the $50 level which of course will attract a lot of attention as it is a large, round, psychologically significant figure and the bottom of the overall consolidation rectangle.

Crude Oil Video 04.02.20

Brent

Brent markets also have gapped lower to kick off the week, reaching down towards the crucial $55 level. At this point it looks as if the market is trying to break down towards the $50 level, which is massive support. Again though, this is about China and fears of whether or not they are going to keep up the demand for energy. At the same time, there are concerns about the oversupply of crude oil, so the oil markets will more than likely find themselves on their back foot, leading to more potential selling. Ultimately, if the market does break down below the $50 level, it’s likely that the market goes down much lower. Alternately though, if the market breaks above the $57.50 level, it’s likely that the Brent markets will recover, but at this point that seems to be a bit of a stretch.

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