Crude Oil Weekly Price Forecast – Crude oil markets finally fill gap

The crude oil markets and finally fill the gap from the Saudi drone strike during the Friday session, so now the question then becomes where we go next? Now that we have filled the most obvious gap on the chart, we should go back to a bit of normalcy.
Christopher Lewis
Crude Oil weekly chart, September 30, 2019

WTI Crude Oil

The West Texas Intermediate Crude Oil market continues to be somewhat flat, even though we have formed a massive red candle stick. This is only because we have shown quite a bit of resiliency to fill the gap, and now that we are back to where we started before the drone strike, it makes sense that the market probably goes back to the behavior that had previously been shown. At this point, it’s obvious that we are near where we started from a couple of weeks ago, so I would fully anticipate more sideways grinding, with maybe a slightly positive tilt, with the keyword being slight.

WTI Video 30.09.19

Brent

Brent markets also fell during the week but found itself to fill the gap and show signs of resiliency on Friday. At this point, I think we will probably continue to grind higher now, but not very rapidly. All things been equal the oil markets will be somewhat flat because I think most fundamental traders believe we are somewhere near fair value anyway. Longer-term traders are going to be stuck as far as this market is concerned until we get some type of catalyst making it worth their time. With that, I believe that we are looking for some type of catalyst to be longer-term traders again. In the short term, you can see that the market is tightening up, so with that once we get the move, we should get enough inertia to get going.

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