Crude Oil Price Forecast – crude oil markets slightly positive on Monday
WTI Crude Oil
The WTI Crude Oil markets rallied significantly during the trading session on Monday but continue to struggle with the idea of the $70 level above, which of course is a large, round, psychologically significant figure. It’s an area that had offered support previously, but I think that given enough time we may break above there again and go looking towards the $71 level, an area that has been very difficult to overcome. At this point, I think that the market will continue to be very volatile and noisy, and of course influenced by the trade dispute between the United States and China.
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Brent
Brent markets also tried to rally but found enough resistance near the $79 level to sit still. I think that the market will also be influenced by whether there is a trade war not, and it increasingly looks likely that it will increase, not decrease. Because of that, it could have detrimental effects on the idea of demand for energy, as global trade slows down. Also, you should pay attention to the US dollar, because it will of course have a certain amount of influence as well, as it has been rallying over the longer-term due to fears of emerging markets falling apart, which of course will affect oil demand as well. I think that the $80 level above is going to continue to be massive resistance, just as the $78 level underneath is massive support, just as the $77 level will be as well.