Crude Oil Price Forecast – Crude Oil Markets Struggling
WTI Crude Oil
The West Texas Intermediate Crude Oil market rallied a bit during the trading session on Wednesday, but as you can see did give back some of those gains. By doing so, it shows that we still have a lot of concerns when it comes to demand for crude oil in a world that is suffering through the coronavirus slowing down employment, manufacturing, and of course demand. At this point, the members of OPEC are trying to come together to cut production by a million barrels a day. That being said though, if there is a lack of demand that won’t matter. What’s interesting is that even though the US dollar has gotten hammered, crude oil did not react so the currency headwinds or tailwinds don’t seem to be playing much of a factor. I believe that the market will try to get to the $50 level, where we will probably see a lot of sellers.
Crude Oil Video 05.03.20
Brent
Brent markets initially tried to rally during the trading session on Wednesday as well but gave back quite a bit of the gains and seems to be getting a bit stuck near the $52 region. At this point, I think the market is going to roll over and continue to sell off unless we get some type of massive action out of OPEC. As long as that’s not going to be the case, the market is likely to see a lot of volatility and at this point I think that the $55 level above probably represents the “ceiling” in the Brent market.
This article was originally posted on FX Empire
