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Crude Oil Price Forecast – crude oil markets slightly positive on Monday

By:
Christopher Lewis
Updated: Sep 18, 2018, 05:21 UTC

The crude oil markets were slightly bullish during the trading session on Monday but continue to face significant resistance above. It’s not that we can break out, just that there is a lot of work to do before it happens.

Crude Oil daily chart, September 18, 2018

WTI Crude Oil

The WTI Crude Oil markets rallied significantly during the trading session on Monday but continue to struggle with the idea of the $70 level above, which of course is a large, round, psychologically significant figure. It’s an area that had offered support previously, but I think that given enough time we may break above there again and go looking towards the $71 level, an area that has been very difficult to overcome. At this point, I think that the market will continue to be very volatile and noisy, and of course influenced by the trade dispute between the United States and China.

Brent

Brent markets also tried to rally but found enough resistance near the $79 level to sit still. I think that the market will also be influenced by whether there is a trade war not, and it increasingly looks likely that it will increase, not decrease. Because of that, it could have detrimental effects on the idea of demand for energy, as global trade slows down. Also, you should pay attention to the US dollar, because it will of course have a certain amount of influence as well, as it has been rallying over the longer-term due to fears of emerging markets falling apart, which of course will affect oil demand as well. I think that the $80 level above is going to continue to be massive resistance, just as the $78 level underneath is massive support, just as the $77 level will be as well.

Crude Oil Video 18.09.18

About the Author

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.

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