2018 the Worst Year for Oil Since 2015
At the start of 2018, Wall Street had predicted that oil prices would surpass the $100 mark in 2018 – for the first time in four years. But the opposite happened -- oil prices experienced the worst annual loss since 2015.
U.S. Brent crude ended the year after tumbling by ~25%, while international benchmark Brent crude ended the year after falling by ~20% in 2018. U.S. crude settled on Monday at $45.41 a barrel and international benchmark Brent crude stood at around $54 a barrel. The declines mark the first annual loss and the biggest yearly drop since 2015, when both contracts fell more than 30%.
So, what went wrong for oil?
First, following the Trump administration’s restored sanctions on Iran, fear of a supply shortage resulted into OPEC members and its allies led by Russia abandoning their 2016 agreement to restrict supply, adding about 1 million barrels per day between June and November.
Second, forecasts of a weaker than expected demand growth for oil resulted into broad stock market sell-off as investors dumped riskier assets. Sell-offs in some of the high-flying technology names, the ongoing U.S.-China trade dispute and rising interest rates acted as a catalyst and oil plunged about $11 a barrel from its October 3 high.
Third, snapping back of the sanctions just a day after being imposed made things worse. It meant OPEC members and its allies had already pumped in more oil into the system while demand growth was moderating and fewer Iranian barrels than expected were lost. Meanwhile, America as the world's biggest oil producer in the second half of 2018, acted as a supply catalyst and further dampened the chances of recovery.
IYE's RSI Indicator recovers from overbought zone
The 10-day RSI Indicator for IYE moved out of overbought territory on September 03, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 42 instances where the indicator moved out of the overbought zone. In 35 of the 42 cases the stock moved lower in the days that followed. This puts the odds of a move down at 83%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for IYE turned negative on September 10, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In 39 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 80%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IYE declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 80%.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 48 of 55 cases where IYE's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 87%.
The Momentum Indicator moved above the 0 level on October 05, 2026. You may want to consider a long position or call options on IYE as a result. In 76 of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 85%.
IYE moved above its 50-day moving average on October 01, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +1.30% 3-day Advance, the price is estimated to grow further. Considering data from situations where IYE advanced for three days, in 345 of 379 cases, the price rose further within the following month. The odds of a continued upward trend are 90%.
IYE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 279 of 325 cases where IYE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 86%.
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