Home / oil price / fxempire declare : Oil Price Fundamental Daily Forecast – Market May be Ripe for Short-covering Rally

fxempire declare : Oil Price Fundamental Daily Forecast – Market May be Ripe for Short-covering Rally

collected by :Jack Alex

referring to

On Friday, July WTI Crude Oil closed at $45.83, up $0.19 or +0.42% and August Brent crude oil futures settled at $48.15, up 0.29 or +0.61%.
U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are trading slightly higher early in the session on Monday.
With the market trading around $46.00, short-sellers are probably questioning the risk/reward of shorting at current price levels.
ForecastAs far as WTI crude is concerned, oversold conditions could trigger a short-covering rally today if the buying is strong enough to take out Thursday’s and Friday’s highs at $46.18.
The price action last week also suggests that buyers are coming in to defend the May 5 bottom at $44.13.

according to

WTI Crude OilThe WTI Crude Oil market fell significantly during the week, crashing towards the $45 level.
If we can break down below the bottom of the weekly range, then we should then go looking for the $45 level underneath.
All things being equal, it looks as if the sellers are going to take over rather soon, and really punish the oil markets.
If we do rally, I need to see a move above the range for this past week to start buying.
, I believe that the sellers get involved and tested the uptrend line that I find is very important.

Crude Oil Price forecast for the week of June 12, 2017, Technical Analysis


according to

JP Morgan Slashes Its 2018 Oil Price Forecast By $11

And now JP Morgan is the bank warning that oil prices may go substantially lower—not only compared to previous price projections, but also compared to the current price of oil.
JP Morgan slashed its 2018 WTI forecast by US$11—from US$53.50 to US$42.
Meanwhile, JP Morgan sees OPEC’s extension deal as having no exit strategy, with the cartel not communicating what its end game is.
On the other hand, U.S. crude output is expected to keep growing for several quarters due to lower breakeven costs and higher investment, according to JP Morgan.
JP Morgan also sees OPEC losing more than it gains with the output cut deal.

JP Morgan Slashes Its 2018 Oil Price Forecast By $11

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