Crude Oil Price Forecast – Crude Oil Markets Break Down

WTI Crude Oil

The WTI Crude Oil market broke down rather significantly during the trading session on Friday, as the Russians have suggested that they were not going to cut production. That has put even more downward pressure on crude oil markets as the world grapples with the idea of demand falling off of a cliff. Furthermore, the previously agreed to cutting production are about to expire, so that gives even more of the likelihood of lower pricing. Oil cannot get out of its own way, and because of this it’s likely that we will continue to see rallies faded. At this point, the oversold condition doesn’t seem to matter, and rallies are to be looked at with suspicion.

Crude Oil Video 09.03.20

Brent

Brent markets also have fallen during the session on Friday, and four at the same reasons. With this, the $45 level is being threatened and if we can break down below that level it’s very likely that we go much lower. Breaking down below the $45 level would be a significant barrier to overcome, and it opens up the door to a move down to the $40 level. With concerns of recession around the world, it makes sense that crude oil continues to fall. Rallies at this point will be looked at with suspicion, especially near the $50.00 level. Furthermore, the $55 level above offers resistance as well. Any signs of exhaustion should be jumped on, because quite frankly this is the type of situation where the market just cannot catch any type of break. Overall, we are in a downtrend for a very good reason.