Crude Oil Price Forecast – crude oil markets continue to show signs of strength

Crude oil markets continued to rally during the day on Tuesday, as the effect of OPEC and not increasing output over the weekend is still being felt by the market. However, we are starting to run into a little bit of resistance which could offer a buying opportunity in the short term. · FX Empire

Christopher Lewis

Updated Tue, Sep 25, 2018, 10:48 PM

WTI Crude Oil

The WTI Crude Oil market rallied during trading on Tuesday, but it seems to be struggling with the idea of $73 a barrel. Eventually, I do believe that the market will be used to that price and we will be able to go higher, but we may be a little bit overextended over the last couple of days. Quite frankly, if we pull back from here it should be looked at as a potential buying opportunity and what should be a very bullish market going forward as the trade wars heat up, one of the sanctions that has been put on is the Iranian oil sanctions, and that has a tightening effect on supply obviously.

Brent

Brent markets rallied significantly during the day as well, but unlike WTI, they don’t seem to be constrained by significant resistance above. Because of this, I think that Brent might be the place to be over the next couple of sessions. Either way, they both tend to move in the same direction, but it seems as if WTI might be a bit of a laggard. In this sense, if you are a WTI trader, you can use the Brent market as a bit of a leading indicator.

I think the $81 level should offer support, and most certainly the $80 level will as it is a large, round, psychologically significant figure. At this juncture, I don’t have any interest in shorting.