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Crude Oil Price Analysis: Resistance Breached, Bulls Take Charge

Crude Oil Price Analysis: Resistance Breached, Bulls Take Charge

Justin McQueen, Strategist

Oil Price Analysis and News

  • Talk of $80 Brent Keeps Prices Afloat
  • Iran Sanctions Dictating, Trade War Shrugged Off
  • WTI Breaks Key Resistance, Outlook Bullish

Talk of $80 Brent Keeps Prices Afloat

Oil bulls continue to take charge with Brent making another push towards $80/bbl. Yesterday’s DoE crude report showed a 5th consecutive weekly drawdown in crude stocks, which in turn added to the upward momentum. Alongside this, the recent reports that Saudi Arabia would be comfortable with Brent above $80 has seen oil bulls use that as their first target, while similar comments from the Iranian oil minister has also buoyed sentiment and could possibly see oil continue to push for better levels.

Iran Sanctions Dictating, Trade War Shrugged Off

Despite the step up in trade war tensions between the US and China with the Trump administration announcing that they will tariff $200bln worth of Chinese goods at 10%, the looming sanctions on Iranian exports has been the biggest driver for oil prices. The Brent futures curve remains in backwardation with the front month trading at a $0.50 premium.

WTI Breaks Key Resistance, Outlook Bullish

Following yesterday’s DoE crude report, WTI crude made a break above the psychological $70 level before breaching the descending trendline from the YTD high. This break confirms that the momentum is to the upside with room for a revisit to the YTD high ($74.06)

Oil Price Chart: Daily Time Frame (January-September 2018)

Crude Oil Price Analysis: Resistance Breached, Bulls Take Charge

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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