Missile and drone attacks by Yemen's Houthis against Saudi Arabia continue to pose risks to the energy market. Against this backdrop, Riyadh and Singapore have announced plans for Saudi crude oil to be stored at the existing Jurong Rock Caverns on Singapore's Jurong Island. Storage operations are expected to begin in the second half of 2027. The proposed arrangement is intended to strengthen Saudi crude supply chains in Southeast Asia and help meet Singapore's energy needs in the event of supply disruptions.
Investors are awaiting the American Petroleum Institute's (API) weekly inventory report on October 27 at 22:30 (GMT+2). The US Energy Information Administration (EIA) will release its corresponding figures on October 28 at 16:30 (GMT+2). Its October 21 report showed that commercial crude inventories, excluding the Strategic Petroleum Reserve, fell by approximately 3.1 million barrels to 412.5 million barrels in the week ended October 16. The inventory decline was also discussed in our previous WTI oil forecast. Separately, Reuters reported on October 26, citing US Department of Energy data, that the Strategic Petroleum Reserve had fallen to 282.6 million barrels, its lowest level since October 1982.
Support and Resistance Levels
On the daily chart, the supplied technical setup shows the instrument rising within a broader ascending channel bounded by 98.00 and 119.00, slightly below its resistance line.
Technical indicators strengthen the buy signal in this setup: the Alligator indicator's faster moving averages are above its slower lines and are moving further away from them, while the Awesome Oscillator (AO) histogram is forming corrective bars in positive territory.
Support levels: 106.60, 97.20.
Resistance levels: 112.00, 119.00.
Trading Scenarios and Brent Crude Oil Forecast
Long positions may be considered after the price breaks and holds above 112.00, targeting 119.00. Stop Loss: 109.00. Expected holding period: 7 days or longer. Short positions may be considered after the price breaks and holds below 106.60, targeting 97.20. Stop Loss: 110.00.
Primary Scenario
| Timeframe | Weekly |
| Recommendation | BUY STOP |
| Entry Point | 112.00 |
| Take Profit | 119.00 |
| Stop Loss | 109.00 |
| Key Levels | 97.20, 106.60, 112.00, 119.00 |
Alternative Scenario
| Recommendation | SELL STOP |
| Entry Point | 106.60 |
| Take Profit | 97.20 |
| Stop Loss | 110.00 |
| Key Levels | 97.20, 106.60, 112.00, 119.00 |
