Crude Oil Price Forecast – crude oil markets fall apart on Tuesday

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Updated: Jun 20, 2018, 04:37 UTC

Crude oil markets fell again on Tuesday, as we continue to see a lot of volatile moves in this sector ahead of the OPEC meetings this week. By the end of the week, we should have an idea as to what OPEC is going to do with production cuts, which at this point a lot of people think that they will shrink the size of cuts, and thereby add supplied to the global environment.

WTI Crude Oil

The WTI Crude Oil market has been noisy during the trading session on Tuesday, losing 1.5% right off the bat. The market still has plenty of support underneath though based upon the uptrend line, and I don’t think that we will break down below there before we get some type of resolution from the OPEC meeting. However, if we did break down below that uptrend line ahead of time, that would be a very negative sign. In the meantime, I anticipate that the next couple of days will be very back and forth as we have seen already this week.

Brent

Brent markets have been very noisy during the trading session as well, gapping lower at the open. The $75 level seems to be a bit of a fulcrum for price, and I think we will continue to dance around this level in the market. I think that it is simply a function of the markets waiting for clarity from OPEC, but I would point out that there is a lot of noise above that could continue to offer resistance. I feel that we probably have more downside risk than up but am aware that the oil ministers could shock the world and keep the cuts in place. If they did, that will be very bullish.

Oil Forecast Video 20.06.18

About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.