Crude Oil Price forecast for the week of January 2, 2018, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market rallied during the week, breaking above the $60 handle for the first time in ages. This is the high of the year, and it looks likely that we will continue to go higher, at least over the short term. I think that pullbacks are likely, but the $57.50 level should be the floor. If we were to break down below there, I think we could probably drop to the $55 level next. Eventually, I believe that we will go looking towards the $62.50 level, and if tensions in the middle east rise between Iran and Saudi Arabia, that could be another catalyst to push the oil markets higher.

WTI Video 02.01.18

Brent

Brent markets rallied as well, clearing the $65 level during the week. Now that we have broken this area, it looks like we will go looking towards the $67.50 level, followed by the $70 handle. The US dollar has been following a downward trajectory, and that of course is bullish for oil as it is priced in the same US dollars. I think that pullbacks offer buying opportunities below, especially near the $63 level if we can fall that much. Ultimately, I think that the troubles with pipelines in the North Sea continue to be a catalyst as well. Longer-term, I think we will eventually see sellers come back but it’s obvious that $70 is on the radar of traders.