It has been another week of consolidation for crude oil as the 6 December Crude Oil Price Technical Forecast shows that further weakness is very likely.
6 December, Swissquote – Prices of Crude oil higher ahead of Wednesday inventory report from the Department of Energy. Goldman Sachs inflated its crude oil price forecasts for 2018, indicating lower inventories for 2018 and the firm commitment exhibited by Russia and Saudi Arabia last week to extend production cuts. Saudi Arabia increased its official selling price to Asia, and a wider than expected U.S. trade report buoyed the U.S. dollar which capped the upside in crude oil price action.
6 December Crude Oil Price Technical Forecast
• Crude oil continues its consolidation phase and should not challenge the 60-dollar level. Expected to show continued sideways move. Support is given at a distance of 54.81 (14/11/2017 low)
• In the long-term, crude oil has recovered after its sharp decline last year. However, we consider that further weakness is very likely. For the time being the pair lies in an upside momentum. Strong support lies at 35.24 (05/04/2016) while resistance can now be found at 55.24 (03/01/2017 high).
This article ‘ 6 December Crude Oil Price Technical Forecast ‘ was written by Yann Quelenn, Market Analyst at Swissquote.
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