Crude Oil Price Forecast – Crude Oil Continues to Look For Direction

WTI Crude Oil Technical Analysis

Crude oil markets continue to see a lot of noisy behavior, but it is probably worth noting that we are recovering from a massive sell-off, so this bounce makes a certain amount of sense. With that being said, I think you have a scenario where traders will continue to see this through the prism of whether or not we are risk on or risk off.

After all, you have to keep in mind that traders also have to be cognizant of the fact that the geopolitical risks are still very much a big thing in the Middle East when it comes to crude oil. We have seen a slowdown in demand and that’s been part of what’s going on and it’s probably worth noting that in the stock markets we’ve seen Delta, Southwest Airlines, and several others talk about low demand for travel. If that’s going to be the case, that directly affects crude oil. So, I think the upside might be somewhat limited at this point.

Brent Crude Oil Technical Analysis

Brent markets look very much the same. I think they are going to try to get to the $80 level, but again, I think you have a situation where the one thing that’s probably holding the market up is geopolitical tensions. We’ve seen demand just absolutely crater over the last couple of weeks, and CEOs on earnings calls in the United States have made big statements. This includes Airbnb, which says the demand has fallen on the floor.

If Airbnb is not getting travelers, then travelers are not jumping on planes or driving their cars long distances, and therefore demand has fallen. With that being said, I think you’re looking for signs of exhaustion, perhaps, to short, but with the geopolitical risk, that’s still very dangerous to do.

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