Crude Oil Price Forecast – Crude Oil Markets Continue to Break Down
WTI Crude Oil
The WTI Crude Oil market initially tried to rally during the trading session on Tuesday but gave back the gains yet again. It looks as if crude oil will continue to suffer at the hands of the coronavirus and the weakening demand around the world. This is further exacerbated by the fact that South Korea now shows a multitude of cases, and it is starting to affect the semiconductor business. That is a huge amount of traffic coming from Asia to Europe and North America, and therefore demand will continue to be a major concern. At this point, it looks as if the market is trying to break down through the $50 region, which of course would be a major breakdown.
Crude Oil Video 26.02.20
Brent
Brent markets also got crushed, initially tried to rally but then turning around to show signs of weakness again. It looks as if the market is going to go down to the $55 level, and then perhaps even try to break down below there. Rallies at this point will more than likely continue to be looked at with suspicion, as Brent is even more sensitive to China and Asia than the West Texas Intermediate Crude Oil market is concerned.
Ultimately, this is a market that is in a downtrend and should continue to be so going forward. If we break down to a fresh, new low, then the market could go down to the $50 level. I have no interest in buying crude oil right now, because we need to see a major turnaround when it comes to risk appetite in global growth.
This article was originally posted on FX Empire
