Crude Oil Weekly Price Forecast – Crude Oil Markets Continue To Find Support

Crude oil markets continue to find support during the past week, as we are approaching the bottom of the overall range. At this point, the market looks very likely to try to bounce but obviously there’s a lot of noise to work through.
Christopher Lewis
Crude Oil weekly chart, October 21, 2019

WTI Crude Oil

The West Texas Intermediate crude oil markets spent the week going back and forth, initially falling rather drastically but then recovered a bit to reach towards the $54 level again. Ultimately, this is a market that looks as if it is trying to carve out a range with the $50 level being obvious support level and of course this makes sense as it is also a large, round, psychologically significant figure and an area that we have seen buyers had previously. To the upside, it looks as if the market will probably be capped at about $60.

Crude Oil Inventories Video 21.10.19

Brent

Brent markets also fell during a bulk of the week, slicing through the $60 level. However, we have sprung to life a little bit later in the week, and it looks as if the $56 level is the beginning of rather significant support, which by looking at smaller time frames you can see extends down to the $55 level, that will be difficult to break through. All things being equal it looks as if we are trying to carve out some type of range over here as well, perhaps reaching towards the $65 level, and then eventually even the $70 level where the selling pressure will overwhelm again. If nothing else, tensions in the Middle East will continue to put a little bit of a “floor” underneath the crude oil markets as the uncertainty will still be a major issue. However, we also have major issues with demand.

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