Brent Crude Oil and West Texas Intermediate Crude Oil Weekly Charts; Brent Drops into Bear Market; WTIC Teases a Bear Market

Brent crude oil falls into a bear market. WTIC crude oil dips into a bear market. Analysts consider a -10% pullback off a top a correction and a -20% drop is a bear market. A +20% rise off a bottom is then a bull market.

Brent oil fell into a bear market in late 2018 during the stock market crash but then exploded higher back into a bull market, courtesy of global central banker largess, the first half of this year. Brent tops out at a 72.6 closing price and 74.7 intraweek high. Thus, a -20% drop from the top is 58.1 and 59.8, respectively. Price is below both levels and Brent is in a bear market.

WTIC oil falls into a bear market this week but manages to temporarily fight-off the pending negativity. West Texas fell into a bear market in late 2018 during the stock market crash but then exploded higher back into a bull market the first half of this year. WTIC tops out at a 64.3 closing price and 66.5 intraweek high. Thus, a -20% drop into a bear market is 51.4 and 53.2, respectively. Price fell below both levels this week ushering in a bear market for West Texas Crude, however, price has managed to move back above the key 51.4 level. Keep watching the 51.4 level. WTIC oil is currently trading at 52.77 and Brent oil is at 57.77. The spread is at 5 bucks.

The global economy is slowing. Oil demand is slowing. This is evidenced by the 20-week MA and 50-week MA cross (red circles). This is a very negative signal for oil over the intermediate and longer term. WTIC is desperately trying to create a positive 20/50 cross but both moving averages are starting to roll over. Ditto Brent.

This morning, the IEA (International Energy Association) lowers its oil growth forecasts calling the oil demand "fragile." This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added Sunday, 8/11/19: WTIC oil rallies up to 54.50 avoiding the bear market, for now. Brent oil rallies to 58.53 trying to recover from its bear market.