Crude Oil Weekly Price Forecast – Crude Oil Markets Make Strong Statement

WTI Crude Oil

The West Texas Intermediate Crude Oil market rallied significantly during the week, reaching towards the $30 level. That of course is a psychologically important level, but it should be noted that the market is closing out the week with a bang, and perhaps people are starting to factor in the rig count in the United States been cut in half, as well as major production cuts. Above there, there is a gap that extends to about $42, so ultimately this is a market that does have a destination, but to get above there would take quite a bit of a change when it comes to the global economy. That being said, if we cannot break above the $30 level, then it is likely that the market goes down to $27.50, and of course $25 after that.

WTI Oil Video 18.05.20

Brent

Brent markets fell initially during the week but found support underneath at the $29 level. After that, the market bounced above there to break above the $30 level, and then perhaps is starting to threaten the $35 level. Break above that level could open up a move into the gap above near the $45 level. Alternately, if the market were to break down below the bottom of the candlestick for the week, that could open up a move down towards the $25 level, possibly even the $20 level. That being said, the market certainly looks as if this bounce is throwing a lot of questions into the year but we have a couple of levels that we can please the next trade based upon, as it should give us a hint as to where the momentum is going.