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 sees MACD Histogram just turned negative
IYE saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on February 25, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 48 instances where the indicator turned negative. In of the 48 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for IYE moved out of overbought territory on March 04, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 40 similar instances where the indicator moved out of overbought territory. In of the 40 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 74 cases where IYE's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
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 of 62 cases within the following month. The odds of a continued downward trend are .
IYE broke above its upper Bollinger Band on March 02, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where IYE advanced for three days, in of 368 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 302 cases where IYE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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