Crude Oil Weekly Price Forecast – Crude Oil Markets Hit Brick Wall

West Texas Intermediate Crude Oil

The West Texas Intermediate Crude Oil market try to reach towards the $35 level during the course of the week but then pulled back a bit. It looks as if there is a lot of resistance just above, especially as there is a gap there. Whether or not we can fill the gap is the next question, and if we do the market could go as high as $41. Ultimately, the market has a lot of things to worry about, not the least of which is the fact that the demand for crude oil is probably lower. However, we have seen a lot of supply destruction, so I think you will see a lot of noise in general, but at this point it is likely that we will see a short-term verse, only to pull right back down.

WTI Oil Video 25.05.20

Brent

Brent markets also try to rally, but unlike the West Texas Intermediate Crude Oil market, the Brent market has the problem that it is much more global, meaning that it has to deal with a large group of failing economies. That being said, the candlestick does look negative and we could have a pullback to the $30 level. However, if we break above the top of the weekly candlestick that I believe this market probably goes looking to fill the gap above near the $45 handle. Either way, longer-term traders again to continue to have a lot of to think about, as the global economy has most certainly changed and for a much longer time than some talking heads are saying. At this point, the market has some deciding to do.

This article was originally posted on FX Empire

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