Crude Oil Weekly Price Forecast – Crude Oil Markets Have Rough Week Again

WTI Crude Oil

The WTI Crude Oil market broke down rather significantly this past week, slicing all the way down towards the $20 level. The market did bounce from there bit but on Friday we started to see selling pressure again. I think at this point we are going to test the $20 level, and if we break down below that level, it’s very likely that the market goes down much lower. All things being equal, the market breaking down below the $20 level probably opens up a move down to the $17.50 level next, and then possibly the $15 level. There is a major gap above, but we aren’t anywhere near changing the attitude of the market right now.

WTI Oil Video 23.03.20

Brent

Brent markets also had a very negative week, and in this particular instance, the market is certainly a lot weaker than the WTI grade. The market breaking through the $30 level was a pretty significant deal, so I think that we will probably continue to drip much lower. Just as in the WTI grade, there is a gap above that needs to be filled. Having said that, it’s going to take quite some time to get that elevated, so I believe that sellers will continue to jump into this market on short-term rallies to try to push it much lower as demand has fallen off of a cliff it and supply is far too overextended at this point. Fading the rally that inevitably happens makes quite a bit of sense. One thing is for sure, you’re going to see a lot of volatility.