Crude Oil Forecast

Oil on the fundamental side

Crude oil prices (West Texas Intermediate) rose close to $63.60 per barrel, recouping their early losses on Monday as markets continued to assess the appropriate risk premium.

US President Trump expressed optimism about negotiations with Iran on a possible agreement to defuse Iran's uranium enrichment capabilities.

Oil prices had risen significantly in previous weeks after escalating tensions between the two countries prompted markets to consider the risks of the US tightening sanctions on Iranian oil and Iranian authorities intercepting oil tankers in the Strait of Hormuz.

The increased risk premiums offset expectations that the oil market would continue to suffer from oversupply this year, as a result of cumulative increases in OPEC production and strong production from the US, Canada, and Brazil, in addition to their support for the organization.

Oil on the technical side

Oil prices are currently trading within a symmetrical triangle on the hourly chart.

Any breach or break of this triangle will see movement in the direction of the break, with downside targets near $61.

On the upside, if there is a break to the upside, targets will be near $64.50 and then $66.00 per barrel, which is the most likely scenario so far.