Crude Oil Price Forecast – crude oil markets pulled back to start the week after gapping higher

Crude oil markets gapped higher to kick off the week as traders are concerned about cooling relations between the United States and Saudi Arabia. The idea is that perhaps the Saudi Arabian government won’t be willing to increase crude oil output, thereby driving prices higher. However, by the time the Americans had jumped on board, things that change quite a bit.
Christopher Lewis
Crude Oil daily chart, October 16, 2018

The BTI Crude Oil

The WTI Crude Oil market fell significantly during the trading session on Monday after initially gapping much higher, before reaching down towards the $71 level. This is an area that has been supportive, and it looks as if the buyers are willing to step in near that area. I also believe that the $70 level underneath is a massive support level based upon the round figure. At that point, I think if we break down below there the crude oil markets could be in serious trouble. I suspect that we will continue to have buyers underneath though, as we continue to see choppy trading conditions.


Brent markets tried to gap higher initially during the session on Monday as well but found the $82 level to be far too resistive. Because of this, we broke down to the $80 level underneath, which is an area that of course has a certain amount of psychological importance built into it. I think the $79 level underneath is massive support based upon the recent bounce, so now I think we may be trying to form a little bit of a basing pattern, but obviously we are very volatile, so I be very cautious about jumping in with too large of a position. Brent markets continue to be a “buy on the dips” scenario.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.