Crude Oil Price Forecast – Crude Oil Continues to Look Soft

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market fell in the early hours on Wednesday again as the world continues surprising the idea of a major recession coming. Quite frankly, if the market is going to continue to see reasons to believe that economic growth is slowing, that obviously means that we are looking at the demand for crude oil dropping quite drastically.

If we were to continue following from here, the market drop opens up the possibility of a move down to the $67.50 level, which is a longer term support level. At this point, I don’t know that there’s anything to keep that from happening. It certainly looks like it’s a fade the rally market. But if we turn around and recapture the $74.50 level, it’s likely that we could see this market recover a bit.

Brent Crude Oil Technical Analysis

Brent markets are very much the same as they have had a short term bounce only to turn around and show signs of negativity again. All things being equal, this is a market that has been very noisy, and it seems to be paying close attention to the $75 level underneath.

If we break that, then you start looking at longer term moves, perhaps down to the $72.50 level, an area that has historically been very well supported. Anything below that would show a complete collapse in economic confidence. At this point, I think we are in the process of fading each short term rally and also in the same process of trying to build a base.

For a look at all of today’s economic events, check out our economic calendar.