Oil price prediction: charts get a boost from the demand and supply side
Above show FXCM's WTI CFD (left) and Brent CFD(Right). Both charts suggest bullish continuation patterns (turquoise parallel lines). If completed with respective breakouts, the measured move (not shown) for USOil is just below $120, and for UKOil is near the $124 level. However, to reach these targets, their stochastics will need to remain at current levels above 80 (green rectangle). This position would suggest an underlying momentum for the energy instruments. However, if the stochastics turn and move down, the current momentum is waning.
Oil is benefitting from:
1. On the demand side, Beijing and Shanghai are relaxing Covid lockdown restrictions as the number of cases drops; and
2. On the supply side, the EU failed on Sunday to agree on an embargo on Russian oil. Diplomats will continue their efforts today and tomorrow. Hungary holds up a consensus, maintaining that the check will affect its economy as it cannot quickly source oil elsewhere. Slovakia and the Czech Republic have expressed similarly. A possible solution was that the ban would apply to tankers but allow delivery via the Druzhba pipeline, but EU financing concerns still need agreement.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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