Brent and WTI Futures, ytd behaviour

The energy markets are moving a lot this year. One of the best examples is the Brent future. The price was steady during the first three months. After that, the volatility rose and we saw big swings. The increase in US oil drilling, the low demand and the failed effort by the OPEC were the main reasons that made the Brent and crude oil fell to the lows of the year.

We have seen the energy markets rising during the last five month. The main reason why the Brent and WTI are rising is the increasing demand while the OPEC is trying to extend the output cuts policy. Considering these reasons, I expect that the bullish trend will continue at least in the short term. 

Brent Dec17 futures

   Source: TradingView, Brent Dec 17 futures, daily

This is the chart that shows the Brent futures behaviour during 2017.

Let’s check the last 5 months:

    Source: TradingView, Brent Dec17 futures, daily

As you can see the Brent has been rising since the middle of Jun.  The area between 50.50 and 53.03 was really important to allow the Brent trade higher. I consider that 55.51 is a good support and I expect that it will go up and consolidate the move above the first resistance (57.21).

The most significant levels for me are:

Resistance 2	59.17
Resistance 1	57.21
Support 1	55.51
Support 2	53.03
Support 3	50.50

WTI Crude Oil Dec17 Futures

    Source: TradingView, WTI Crude Oil Dec17 futures, daily

This chart is similar to the one above with the Brent. Depending on the inventories today it can look for highs around 52.41. It shows strength as it´s above the moving averages represented in the chart

Resistance 1	52.41
Support 1	50.55
Support 2	48.85

This is only a brief analysis of the Brent and WTI crude oil futures. I think it’s good to have an idea. I can´t provide a forecast for the future because a lot of things are involved. The popularity of electric cars is increasing. The environmental policies become more strict every year. We have seen a lot of sanctions in the automotive sector this year. The OPEC is promoting an output cut policy that it´s driven the oil prices higher. I hope it helps.

Have a good trading!

Disclaimer

I wrote this article myself, and it expresses my own opinions that shouldn't be used as a trading advice. Trading carries considerable risk due to the high leverages involved