Crude Oil Price Update – $65.25 Potential Trigger Point for Acceleration into $64.04 to $63.79

U.S. West Texas Intermediate crude oil futures are trading lower early Thursday, pressured by concerns over a potential increase in Iranian supply and worries over demand in India due to the on-going COVID-19 breakout. Despite this bearish news, prices remained underpinned by optimism over increased gasoline demand from the start of driving season in the United States and Europe.

At 08:25 GMT, July WTI crude oil is trading $65.73, down $0.48 or -0.72%.

Trading conditions are likely to remain choppy over the near-term until there is a formal announcement over the U.S. – Iran deal. In the meantime, on June 1, OPEC+ is expected to assess whether to change their plans for easing production curbs against the prospect of Iranian supply returning to the market.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. A trade through $67.02 will change the main trend to up. A move through $61.56 will signal a resumption of the downtrend.

The minor trend is also down. A trade through $66.51 will change the minor trend to up. This will also shift momentum to the upside.

The short-term range is $60.55 to $67.02. Its retracement zone at $63.79 to $63.02 is the nearest support.

Daily Swing Chart Technical Forecast

The narrow trading range suggests an upside bias could re-emerge on a sustained move over $66.51 and a downside bias could develop on a sustained move under $65.25.

Bullish Scenario

A sustained move over $66.51 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the contract high at $67.02.

Bearish Scenario

Taking out $65.25 will signal the presence of sellers. Heavy selling volume could trigger an acceleration to the downside with targets coming in at $64.04 and $63.79. Since the main trend is up, buyers are likely to show up on a test of this area.