Crude Oil Price Forecast

Oil on a fundamental level Crude

oil prices rose near $58.30 per barrel on Tuesday, as investors await uncertainty in Venezuela, as the market compares expectations of a global supply glut this year with uncertainty over Venezuelan crude oil production following the arrest of President Nicolas Maduro in the United States.

Venezuela will need years of massive capital investment to modernize its oil infrastructure, and regime changes rarely lead to quick investments and stable supplies, especially with power struggles.

Prices are expected to rise slightly, but this is likely to be short-lived.

The administration of US President Donald Trump is expected to meet with US oil executives this week to discuss boosting Venezuelan oil production.

Venezuela is a founding member of the Organization of Petroleum Exporting Countries (OPEC) and has the world's largest oil reserves at 303 billion barrels, However its oil sector has long been in decline, in part due to a lack of investment and U.S. sanctions. 

Oil on a technical level

Oil is trying to break through the levels of the descending price channel on the daily frame, and prices are already trading above this channel today under the influence of the positive divergence of oil on the MACD.

Expectations indicate that if today's candle also closes above this channel, further rises are expected towards $60 levels as an initial target, then $61.50, and finally $65.00 per barrel.

This scenario will fail if it breaks below $56.00 levels.