Crude Oil Weekly Price Forecast – crude oil markets break down yet again this week

WTI Crude Oil

The WTI Crude Oil market has shown a massive amount of selling pressure yet again during the week, slicing through the $50 level and reaching towards the $45 handle. This is a massive move lower that seems to only be accelerating. At this point though, I suspect there’s even more support at the $40 level, so if we break through the $45 handle, we will see even more pressure in that area. OPEC is almost certainly going to extend production cuts, because quite frankly most of the countries in that cartel desperately need higher oil prices. However, if global rates of growth don’t pick up, oil is going to continue to struggle.

WTI Video 24.12.18

Brent

Brent markets broke down significantly during the week, slicing through the $55 handle. This is a continuation of the massive selloff that we have seen, and it now looks as if Brent will go to the psychologically important $50 handle, as it is almost a foregone conclusion at this point. I suspect selling rallies should continue to be a major issue, and the $60 level should offer a bit of a ceiling in this market. While WTI looks very soft and weak, the Brent market looks even worse, and it looks very likely that we will continue to see so much in the way of selling pressure with this slowing global economy, and of course a glut of supply when it comes to crude oil. I have no interest in buying this market until we can clear the $64 handle.