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Crude Oil Price Forecast – Crude Oil Markets Pressing Lows

Christopher Lewis

WTI Crude Oil

The WTI Crude Oil market has gone back and forth during the trading session again on Friday as we continue to bounce around just above the $50 level. That of course is a large, round, psychologically significant figure so don’t be surprised at all to see more the same. However, if we make a fresh, new low, then the market is likely to go towards the $47.50 level next, and then eventually the $45 level. To the upside, if the market was to break above the $52.50 level then we could have a move towards the $55 level. However, with China demanding much less crude oil, that seems to be the least likely of the two scenarios.

Brent

Brent markets went back and forth during the session as well, but ultimately settled on a slightly negative candlestick. Keep in mind that OPEC and Russia are still trying to discuss whether or not they want to cut production even further, and that might be the one thing that protects this market. Other than that, then you need to look at the fact that China it is demanding a lot less petroleum right now as an area of over 400 million people are now on lockdown. Factories are producing much right now and therefore transportation is a necessarily an issue either. That being said, this is a market that breaking down to a fresh, new low could open up the door to the $50 level. To the upside, the market needs to break above the 57.50$ level for me to start buying with a short-term target of $60.

This article was originally posted on FX Empire

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