Crude Oil Price Forecast – Crude Oil Market Remains Stubborn

WTI Crude Oil

The West Texas Intermediate Crude Oil market has fallen a bit during the trading session, only to turn around and show signs of strength. Ultimately, the market is likely to see a lot of resistance just above though, and quite frankly I think this week is fraught with all kinds of risk that could throw oil markets around. Because of this, it is very likely that this remains a “sell on the rallies” type of situation, but that does not mean that it is going to be easy. If we break down below the bottom of the hammer from the session that we are forming on Monday, that opens up the trapdoor to much lower pricing, specifically the $32.50 level, perhaps down to the $30 level.

Crude Oil Video 03.11.20

Brent

Brent markets also fell during the trading session on Monday, but then turned around to reach towards the $30 level. Ultimately, this is a market that continues to see a lot of volatility, but I believe that the market still has plenty of resistance above. Ultimately, this is a market that should continue to see a lot of volatility, but there should be plenty of sellers out there, because quite frankly the demand just is not going to be there. A lot of the people that are buying oil at this point are banking on stimulus changing things, but with the economy is locking back down, the demand just will not be there. Pay attention to the US dollar, it can have a major influence on what happens here as well. With this, the negative correlation between the US dollar and the crude oil market should continue.

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