Crude Oil Price Forecast October 30, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market initially drifted lower during the Friday session, but found support at the $52.50 level and then shot to the upside. By showing this type of bullish pressure, it’s obvious that we are ready to go higher, and now I look at pullbacks as buying opportunities. Those buying opportunity should extend towards the $55 level above which should be resistance. A break above there would be very bullish, perhaps in the market to the $60 level, but it’s going to take a significant amount of momentum to make that happen. In the meantime, I look at pullbacks as buying opportunities on signs of support, if we can stay above the $52.50 level. If we do not, then that would be a false break out and very negative. This market could be volatile, but the fact that we have seen so much bullish pressure in the face of a strengthening US dollar is a very good sign.

Crude Oil Inventories Video  30.10.17

Brent

Brent markets pulled back initially, but then exploded above the $60 handle which I think is very important. The market breaking above there is a very bullish sign, and I think the dips now will offer buying opportunities. If the US dollar roles over, that will only fuel the move to the upside. I believe that the market has plenty of momentum underneath, at least for the short term. Longer-term, I think we will eventually hit an area where the US refiners and drillers start to flood the market. Until then, we could have a bit of an uptrend, and I do know through my contacts in the business that hedge funds are starting to throw more money into petroleum. In the short term, we should continue to see buying.