Crude Oil Price Forecast – Crude Oil Markets Continue to Tread Water

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gone back and forth during the trading session on Wednesday again, as the $25 level has offered resistance the last couple of days, but quite frankly I think there is plenty of resistance even further to the upside. The $27.50 level will be an area that attracts a lot of attention, just as the $30.00 level will. I think at this point, crude oil is in a bit of a death spiral due to the fact that the price war continues, and of course the global demand for crude oil is falling off of a cliff not only due to economic slowing and oversupply, but now with the virus things are getting even worse. I continue to fade rallies.

Crude Oil Video 26.03.20

Brent

Brent markets look a bit different, gaining and rally towards the $30.00 level, showing signs of real strength. However, I think it’s only a matter of time before it rolls over, so I’m looking to fade the first signs of weakness near the $35 level, or perhaps even the $31 level if it shows itself to be. Ultimately, this is a market that is oversold so I think that given enough time we could reach towards the gap above, but we need some type of good sign coming out of either Saudi Arabia or Russia as to knock off this price war. So far, we don’t see that, so I still believe that rallies are not to be trusted anytime soon. The $25 level underneath shows plenty of support, so I think that’s essentially your “floor.”