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Crude Oil Price Forecast – crude oil markets stable

By:
Christopher Lewis
Updated: Sep 27, 2018, 04:44 UTC

Crude oil markets drifted a little bit lower ahead of the FOMC meeting during the day on Wednesday, as the stability of the uptrend is somewhat intact. I think at this point, it’s likely that the market should continue to go higher, but we may get the occasional pullback that should offer value.

Crude Oil daily chart, September 27, 2018

WTI Crude Oil

The WTI Crude Oil market pulled back slightly during the day on Wednesday as we awaited the FOMC statement, perhaps due to the currency headwinds ahead of the meeting. Ultimately, I do think that the oil markets will continue higher as we have the Iranian sanctions coming. Ultimately, this should continue to a tightened supply and that should of course lead to higher pricing. Ultimately though, I think that we will probably go to the $73 level, and perhaps even the $75 level after that. I look at the $71 level as being extraordinarily bullish and supportive due to the previous gap.

Brent

Brent markets rallied significantly during the day as well, breaking above the $81 level again. Overall, I think that the market continues to show a lot of support and I think that we will eventually go to the $82 level. At this point, the $80 level underneath should be supportive, just as the $78 level should be due to the gap. Ultimately, I believe that buying the dips continues to be the best way forward as we have seen so much in the way of bullish pressure over the longer-term. I think that the buyers continue to try to push this market towards the $82 level, and then possibly even the $85 level. If we break down below the $70 level, that would be an extraordinarily negative sign, perhaps sending the market down to the $75 level.

Crude Oil Price Forecast Video 27.09.18

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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