Crude Oil Price Forecast – Crude Oil Markets Break Down Yet Again on Friday

WTI Crude Oil

The West Texas Intermediate Crude Oil market has broken down significantly during the trading session on Friday to slice down below the $45 level. It is possible that we get a bit of a bounce from here, but any bounce should be sold into, especially if we get closer to the $50 level. OPEC needs to cut production to have any hope of a bounce for a longer-term move, and quite frankly even then I don’t think that will be enough as people are worried about global demand and the longer-term oversupply that we already have. With that being the case, I am a seller. However, if we break down below the lows again, we could go looking towards the $40 level.

Crude Oil Video 02.03.20

Brent

Brent markets have also broken down, to slice down below the $50 level. It’s very likely that the market may go looking towards the $45 level given enough time, but in the short term a little bit of a recovery may be possible. That recovery should continue to be sold into as there are far too many reasons to think that this market is going to fall apart again. Granted, we can’t go in one direction forever but clearly buying is all but impossible less something drastically changes. We would need to see the coronavirus situation suddenly disappear, something that’s not going to happen. Ultimately, this is a market that seems as if it is going to go lower given enough time but with all things, you don’t chase the trade.

This article was originally posted on FX Empire

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