Crude Oil Weekly Forecast – crude oil markets continue to push higher

Crude oil markets continue to grind higher, reaching towards the major resistance, but by the time we closed out the week, it looks as if we are still struggling in general. · FX Empire

Christopher Lewis

Updated Fri, Sep 21, 2018, 11:20 PM

WTI Crude Oil

WTI Crude Oil markets rally during the week, breaking above the $71.15 level. The numbers were somewhat bullish in the inventory during the week, but most importantly we are starting to see global tensions rise, and of course the sanctions against the Iranians will tighten supply. However, the same time we have major issues coming into the possibility of a global trade war, which should drop to man. That being said, we are starting to trade the November contract in the futures market, which of course is the month that the Iranian sanctions kick in. Because of this, I fully anticipate that we are going to see this market continue to go higher, but not without the occasional pullback.

Brent

Brent markets were a little bit different in the sense that they have formed a shooting star for the third week in a row. This $80 level just above is a major resistance, and I think if we can clear that area this market will skyrocket. I suspect a pullback could be coming in the short term, but longer-term I fully anticipate that this market will continue to go higher. Quite frankly, market participants continue to buy the dips and I think that continues to be the case, especially now that the Iranians are going to be taken off line essentially. The one thing that has been weighing upon crude oil lately has been the surging US dollar, so if that turns around we could see petroleum markets accelerate to the upside rather quickly.