Crude Oil Price Forecast: Option Traders Salivate Over $100/bbl Brent

Crude Oil Price Forecast Talking Points:

  • The ONE Thing: Things are looking up (even more than usual) for crude bulls with Brent trading to $81.86, the highest level since November 2014 with WTI trading near $72. If crude can avoid a bearish chart set-up, then it may soon be off to the races
  • OPEC’s weekend meeting in Algiers passed with an apparent disregard or outright refusal to heed Trump’s request to an immediate supply boosts. With Trump pushing forward with Iran sanctions, a tighter market may soon result that could put further support under oil.
  • Fundamental Focus on Crude Oil: Oil Firms Ahead of Algiers OPEC Meeting That May Set Stage for Q4
  • Not all benchmarks are equal as Brent looks set to widen the spread to WTI as evidenced by the CFTC positioning data that showed Brent longs were increased while WTI positions declined.
  • WTI Crude Oil Technical Analysis Strategy: WTI crude oil may soon test a potential triple top/ head and shoulders reversal pattern. A validation would come from a break below a neckline near $65/bbl. However, a failed bearish pattern (i.e. a bullish breakout)

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