Crude Oil Weekly Price Forecast – crude oil running out of momentum?

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Updated: Jul 7, 2018, 04:34 UTC

Crude oil markets have been on an absolute terror lately, but this past week have seemed to find a bit of resistance and perhaps have gotten a little ahead of themselves. At this point, I think that the market is probably due for a correction, but it should be just that: a correction.

WTI Crude Oil

The WTI Crude Oil market initially gaps lower at the open for the week, turned around to rally towards the $75 level, but found that area to be too expensive. We ran out of momentum, but that isn’t a huge surprise, especially considering that Independence Day was right in the middle of the week, keeping US traders on the sidelines. I think a pullback could come after the shooting star, but I think there’s also plenty of support below, certainly at the psychologically important $70 level, if not the $65 level below there.

Brent

Brent markets also fell a bit after initially gapping lower to open the week, and it looks likely that we will continue to pullback bit from here. I think that the $75 level could offer support, followed by the $73 level. Anticipate a lot of noise in this market, but quite frankly it is an uptrend, and $72 underneath seems to be a bit of a floor for the overall uptrend as we continue to see buyers jump into this market. It’s obvious that the $80 level will cause a significant amount of resistance, but now you should be able to find a decent price at lower levels that you can take advantage of and what has been a very strong uptrend. Disruptions in Venezuela, Libya, and of course I read will continue to cause problems in the oil markets.

WTI Video 09.07.18

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.