Crude Oil Weekly Price Forecast – Crude oil market continues to rally

Christopher Lewis
Updated
The crude oil markets had a very good week, as we have broken through major resistance and continue to climb in one grade that we follow here at FX Empire, and the other is knocking on the door of doing the exact same thing.

WTI Crude Oil

The WTI Crude Oil market broke higher during the week, breaking clearly above the $60 handle right away. This was an area that of course would have a certain amount psychological influence on the market, as it is a large, round, psychologically significant figure. At this point though, we are closing out the week right around the $62.50 level, with it being “middle ground” between the $60 level and the $65 level. With that being the case, I like the idea of buying dips and I think that the $60 level is the “floor” going forward, as we will more than likely test that previous support level at the $65 handle.

WTI Video 08.04.19

Brent

Brent markets also have had a good week, reaching towards the $70 level. That is the beginning of significant resistance based upon previous trading action, but at this point I think that it is only a matter of time before break out above there. We may get a short-term pullback, but I look at that as a potential buying opportunity as there is a lot of bullish pressure in the crude oil markets overall. Going forward, if the greenback can soften a bit, that should help commodities overall, and of course crude oil won’t be any different. Beyond that, we have the OPEC not even bothering to meet until June, which means production cuts will still be in effect until then. In general, I have no interest in shorting crude oil unless something changes drastically.

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This article was originally posted on FX Empire

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