Oil prices stabilized by the end of the trading session after suspending the downtrend. In particular, WTI and Brent oil prices managed to set new major lows. More specifically, they reached the lowest levels since February 2009. WTI oil ended the trading session at $37.51 per barrel, which is 0.37% below the previous close. Brent oil dropped by 1.2% down to $40.26 per barrel.
Previously, Masterforex-V Academy experts predicted further price crash in the global market of crude oil in the near future. The latest downtrend made the forecast come true. At first WTI dropped to $43.28/b and then further down to $37.75. Later on, the mentioned bottom was broken as the price continued its trip down to new local lows.
Meanwhile, Brent oil at first reached $46.25/b and later touched $42.20/b. Later on, the mentioned bottom was broken as the price continued its trip down to new local lows.
If to take a closer look at the weekly charts of Brent and WTI, we can see that the latest downtrend has ben going on for 2 weeks. This continuous sellout has already taken the prices to the lowest price levels of the years.
The oversupply has been the key factor pressing oil prices for months. The global supply of crude oil is clearly much bigger than the demand. Yet the imbalance keeps on widening as OPEC and non-OPEC oil exporters abstain from cutting their oil production while trying to preserve their market share and only adding fuel to the fire. Apparently, while the Chinese economy is slowing down and therefore China needs less oil to power its manufacturing capacities, there is no point in expecting any major recovery in oil prices.
WTI and Brent prices have been going down for 2 months in a row. This is confirmed by the corresponding Monthly charts.
Also, we can see that there are no key levels of support nearby to help the prices found the bottom from the technical standpoint. This means that the next major targets are 2009 lows - $33.18/ b for Brent and $32,93/b for WTI.
