Crude Oil Weekly Price Forecast – Crude Oil Showing Signs of Stress

WTI Crude Oil

The West Texas Intermediate Crude Oil market has broken down a bit during the week, slicing through the 40 day EMA quite handily. By doing so, the market looks as if it is ready to continue dropping from here, reaching down towards the $35 level, possibly the $30 level. In the short term, a small bounce towards the $40 level would make a certain amount of sense and I think that there would be plenty of sellers there waiting. With this, I like the idea of fading those rallies and I do think that it is only a matter of time before we get more bearish pressure.

WTI Oil Video 14.09.20

Brent

Brent markets of course are failing as well, and quite frankly they look a bit worse. This makes sense because what kicked all of this off was the Saudi oil minister telling the world that they were going to start selling oil at cheaper prices. That of course is something that is worth paying attention to, as it suggests that demand is dropping off of a cliff. Now that we are cracking the $40 level, a break down below the $38 level opens up the floodgates for a move down to $35, followed by a very quick move down to the $30 level. Just as in the WTI market, it would not be surprised at all to see a bit of a bounce, but I think that bounce probably gets sold into as well. I am negative of crude oil, especially if the US dollar starts to pick up strength in general, as it is a bit oversold.

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