Crude Oil Weekly Price Forecast – Crude Oil Markets Bounce FinallyCrude oil markets rallied a bit during the trading week is people are starting to focus on the possibility of an OPEC plus production cut, which of course could help some of the bearish pressure. However, demand is still a major issue.
WTI Crude Oil
The West Texas Intermediate Crude Oil markets have rallied significantly to form an engulfing candlestick that swallows an inverted hammer from the previous week. It looks as if the $20 level is trying to hold, after Donald Trump suggested on Thursday that a supply cut deal between Saudi Arabia and Russia could be coming. At this point, that would essentially and a price war but the biggest problem we have eased demand, something that obviously is nowhere near being fixed. At this point, it’s likely that we go looking to try to get towards the gap above, but my trade is to simply wait for signs of exhaustion in that area to start selling again.
WTI Oil Video 06.04.20
Brent markets also did the same thing, breaking towards the $35 level before trying to reach above. If we do, then I believe that somewhere between the $40 level in the $45 level it’s likely that there are a lot of selling pressure in that area. After all gaps do get filled, and from a technical analysis standpoint I believe that’s what we are looking at. That being said, if you are patient enough you should get a nice selling opportunity at higher levels as there is absolutely no demand out there. In fact, the demand for crude oil is going to be weak for quite some time, in an environment that already had far too much oil to begin with. Oil markets are simply a “sell the rallies” type of situation. In fact, we are literally running out of places to store it.