Crude Oil Price Forecast

Oil on the fundamental side

Oil prices rose on Monday on optimism that the U.S. government shutdown will end soon, boosting demand in the world's largest oil consumer, easing concerns about rising supplies globally.

The impending reopening will restore the salaries of 800,000 federal employees and restart vital programs that will boost consumer confidence, activity and spending.

This would also improve risk appetite in the markets and lead to a rebound in WTI crude prices, which are now trading near $60 per barrel.

Oil on a technical level

WTI crude oil is facing downtrend levels and the neckline of the inverted head-and-shoulders pattern on small charts, especially the hourly frame.

If this trend and the neckline are broken around 60.40 levels and close above two consecutive hourly candles, it could open the way for more upside towards completing the pattern at $61.60 and then $62.20 per barrel.

The scenario fails if the neck and the trend breaks back down.