Crude Oil Price Forecast – Crude Oil Continues to Drift Lower

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market continues to go back and forth, bouncing along the bottom, trying to find some type of floor. But at this point, I think we also have to keep in mind that if we do break down even further, it’s very possible the bottom will fall out in oil and that could be disastrous for risk appetite.

There does come a point where cheaper oil is actually a bad thing and we’re getting close to it. So, with that being said, I’m very cautious. If we were to recapture the $71.50 level, then I could become much more bullish, but we have a long way to go before that happens. So quite frankly, I’m probably more or less standing on the sidelines.

Brent Crude Oil Technical Analysis

Brent markets are testing the crucial $72.50 level as the markets are starting to show signs of weakness again. If we break through this level, then Brent could be the first to fall and it could drag West Texas Intermediate with it. On the other hand, if we can recapture the $74 level, it could be a positive turn of events and send Brent higher.

There are a lot of concerns about global demand, especially as Chinese demand numbers were very anemic, and that has the market just losing its mind. Because of this, I’m not very bullish on oil anymore. I was hoping for a bounce, but we didn’t get it. So now it’s probably more or less a market to observe. In the meantime, perhaps looking for a longer term setup, but we just simply aren’t there at the moment.

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