Weekly Crude Oil Price Forecast – Crude Oil Markets Retreated During the Week

As we are now retesting the prior channel that we had been in, crude oil prices have retreated little this week, displaying signals of hesitancy.

The West Texas Intermediate Crude Oil market has declined sharply during the week, erasing roughly half of the previous week’s gain. In spite of this, it does not necessarily mean that we are going to break down drastically, but you should be aware that the market is currently in motion, as OPEC has reduced production by 2 million barrels per day, and there are serious concerns about whether or not there will be a massive global slowdown. If there is, certainly the demand will be crushed.

Brent markets have also declined during the week to test the preceding channel’s upper boundary. At this time, I believe that we will eventually find buyers, but it appears that we will continue to test lower in the near future. As with the WTI Crude Oil market, we must be concerned about the collapse of demand as the global economy is pummeled. Furthermore, we must also be concerned about the U.S. dollar; as it continues to appreciate, it will require less dollars to purchase a barrel of oil.

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The $80 level below will be a big support level, and I believe as long as we can stay above it, buyers will have a chance to enter the market. As we attempt to determine the cause of the next panic, we will likely observe a great deal of sideways and choppy price action in the immediate term.

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