Crude oil Outlook for 16 October 2017

Bullish

After a strong performance in the second week of October, we are now bullish on crude oil in the medium-term. Crude stocks continue to fall around the world, helping the 'rebalancing' narrative. Furthermore, the recent the seizure of Kurdish oil assets near Kirkuk and Trump's refusal to certify the Iran deal are increasing expectations of lower future supply. Looking at various technical indicators on the weekly chart, crude oil is looking neither overbought nor oversold, but remains within normal trading conditions. 

Updated