Crude Oil Price Forecast – Crude Oil Trying To Find a BaseCrude oil markets continue to try to find some type of base but have also sold off to show signs of hesitation. Part of the reaction would have been reports that the United States and Russia have decided that cooperation on oil markets is in the best interest of everyone.
WTI Crude Oil
The WTI Crude Oil market rallied a bit during the trading session on Tuesday, as word got out that the Americans and the Russians are going to start trying to cooperate in the oil markets. If that’s going to be the case, that could help mark the beginning of the end of the price war, effectively cutting Saudi Arabia out of the mix. In that being said, the price action has ended up filling the gap that formed on Monday, so now the question is whether or not we can break above there? If we do then I think it opens up a possible move towards the $25 level. On the other hand, if we were to break below the lows of Monday, that opens up a move down to the $17.50 level.
Crude Oil Video 01.04.20
Brent markets also rallied a bit during the session and also have filled the gap. At this point, the market is very likely to continue to see a lot of volatility, but we are at extremely low levels. The $25 level underneath offering support, so if we were to break down below it the market could crash into the $22.50 level. That being said though, the $30 level above could be a target if they decide to push the market higher. Break above that level would be very bullish as well and I do think that eventually we will try to fill the gap above, but we need a major change in the risk profile of the world, something that isn’t coming anytime soon.