Crude Oil Weekly Price Forecast – crude oil markets show signs of life at the end of the week

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Updated: Aug 11, 2018, 05:20 UTC

Crude oil markets were very volatile during the week but held that crucial support levels on Friday to keep hope alive for the buyers. At this point, I anticipate that the market participants will continue to try to drive higher.

WTI Crude Oil

The WTI Crude Oil market has found a bit of a reprieve after initially trying to rally, finding a ton of selling at the $70 level, and then breaking below the $67 level for the briefest of moments. Friday was bullish enough to convince me that we are going to try to contend for support here, and I believe that it is only a matter of time before we get a situation where buyers return. I think the biggest problem with the market right now as the strength of the US dollar. Beyond that, there are none of geopolitical concerns out there to drive oil higher.

Brent

Brent markets of course did the same thing, as we reached towards the $75 level, pulled back below the $72 level, only to bounce on Friday. While the market does look a little suspect, at the end of the day it’s likely that we will continue to see buyers jump into this market perhaps driving it back towards the $75 handle. I think that the marketplace continues to favor higher oil prices, but the US dollar has provided a bit of a drag on those higher oil prices. Ultimately, we still remain in a “buy on the dips” type of market. However, if we close below the $72 level on the weekly chart, then we could go looking towards the $70 level next. Overall, I would anticipate that we do go higher over the longer-term.

WTI Video 13.08.18

About the Author

Christopher Lewisauthor

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.