Crude Oil Price Forecast – Crude Oil Markets Continue to Drift Slightly Lower

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market has fallen a bit during the trading session on Monday to kick off the week on the back foot. At this point, it looks like there are a lot of concerns out there when it comes to demand, as we are most certainly heading into a global recession. If that’s going to be the case, then it makes a lot of sense that crude oil will continue to fall. Ultimately, this is a situation where demand is starting to take control of the entire situation, and tight supply is seemingly ignored. Quite frankly, it doesn’t matter how tight the supply is if people aren’t looking to buy it.

Brent Crude Oil Technical Analysis

Brent markets have also drifted lower, reaching the $87 level. Ultimately, this is a market that is looking for some type of support, but if we do see any rally at this point in time, it’s likely that we will see exhaustion that people are willing to fade. That being said, I think a rally is possible just due to the fact that there has been so much selling pressure in the short term. That rally more likely than not will end up being short-lived at best, so with this being the case, I think you’ve got a situation where you are fading the first signs of exhaustion when you get them.

The market breaking down below the $85 level opens up the possibility of a move down to the $82.50 level, which has seen support previously. In that scenario, we could break down to the $80 level rather quickly, as it would be a serious breach of support.

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

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