Crude Oil Weekly Price Forecast – Crude Oil Markets Looking to Recover

WTI Crude Oil

The West Texas Intermediate Crude Oil market went back and forth during the trading week, initially pulling back towards the support range that starts at the $50 level and goes towards the $52.50 level. All things being equal, I do believe that traders will continue to look at that area as the bottom of the overall support level that keeps the range intact that I have marked on the chart. Above, I see the $65 level is the top of the overall range. The fact that we had sold off so drastically tells me that oil could be undervalued, but there are still a lot of concerns when it comes to China and its lack of demand. If we can break above the $55 level, it’s very likely that we will go looking towards the $60 level next. Otherwise, expect choppy noise.

WTI Oil Video 24.02.20

Brent

Brent markets went back and forth during the week, reaching as high as the $60 level. It has pulled back towards the $57.50 level, but at this point I think the question really comes down to whether or not we can break above $60 again. If we do, then I think the $65 level above could be a target. Just as in the WTI grade, the market is testing the range overall, and therefore I think a bit of upward pressure could come in, but this will move based upon whether or not there is perceived demand coming out of China overall. If the market breaks down, the $50 level will be the next support level.