Crude Oil Price Forecast – Stalls After OPEC Slashes Demand Forecasts

WTI Crude Oil

The West Texas Intermediate Crude Oil market rallied initially during the trading session on Monday but then turned around as OPEC slashed Q1 demand estimates, causing traders to run for cover. Ultimately, there is still plenty of support underneath so more than likely what we will see is a pullback that gets bought back into. The $43.50 level has been significant resistance in the past, so it should be significant support in the future. To the upside, we have the $50 level which of course will be a bit of a target and a resistance barrier. That is more than likely where the buyers are trying to send this market over the next several weeks.

Crude Oil Video 15.12.20

Brent

Brent markets broke above the $50 level during the trading session but just like the WTI market, pulled back after Q1 estimates were slashed by OPEC. All things been equal though, the Brent market is more than likely going to continue to grind higher as well, especially if the US dollar starts to fall again. The markets during the trading session on Monday have been looking for some type of catalyst on the whole, so of course oil does not have much to go on more than the idea of demand being pulled forward. At this point, crude oil still looks like a market that you probably buy on dips, unless of course we get some type of impulsive negative candle. Right now, it does not look like we have one, so I do believe that it is only a matter of time before we turn right back towards the upside.

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