Crude Oil Weekly Price Forecast – Crude Oil Markets Break Through Support

WTI Crude Oil

The West Texas Intermediate Crude Oil market has broken down a bit during the course of the trading week, to slice through support yet again. That being the case, the market is likely to continue seeing downward pressure, as the extensively the $60 level, then I think we have much further to go. In the short term, do not be surprised at all to see a little bit of a bounce, as there are still people out there carping on about the idea of the global economy picking up, but it is worth noting that structure is starting to break down, and already has done so on the daily timeframe.

WTI Oil Video 23.08.21

Brent

Brent markets have broken down as well, slicing through an uptrend line that I have drawn on the chart. At this point, the market looks as if it is threatening the $65 level, which of course will attract a certain amount of attention. Breaking down below the bottom of the candlestick for the week almost certainly opens up the possibility of a move down towards the $60 level, which is just above where the 200 week EMA is currently trading. The market has broken down structurally, and that is a very negative turn of events. Despite the fact that OPEC did not listen to Joe Biden begging them to increase production, it does not seem as if the world is overly surprised or concerned about a lack of demand. Quite frankly, a lot of the inventory figures have been a bit disappointing for a while now, and people are starting to worry about China also.

For a look at all of today’s economic events, check out our economic calendar.