Crude Oil Price Update – A Close Under $47.80 Will Indicate Sellers Are Taking Control

U.S. West Texas Intermediate crude oil futures are edging higher shortly before the close on Wednesday after a government report showed crude inventories fell by 6.1 million barrels in the week-ending December 25, exceeding analysts’ expectations in a Reuters poll for a 2.6 million-barrel drop, as crude oil exports rose. Exports rose to 3.6 million bpd from 3.1 million bpd a week earlier.

At 19:54 GMT, February WTI crude oil futures are trading $48.30, up $0.30 or +0.63%.

Gains were likely capped by the light holiday volume and worries ahead of the OPEC+ summit on January 4. The group is expected to approve of a 500,000 barrel per day increase in output in January and February.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A move through $49.43 will signal a resumption of the uptrend. The main trend will change to down on a trade through $46.16.

The minor range is $49.43 to $46.16. Its 50% level at $47.80 is support. The market tested this level earlier in the day.

The major support is the Fibonacci level at $46.04.

Daily Swing Chart Technical Forecast

The early price action indicates the direction of the February WTI crude oil market into the close will be determined by trader reaction to $47.80.

Bullish Scenario

A sustained move over $47.80 will indicate the presence of buyers. If this move can generate enough upside momentum then we could see a late session drive into this week’s high at $48.96 and the main top at $49.43.

Bearish Scenario

A sustained move under $47.80 will signal the presence of sellers. Under normal volume conditions, breaking this level would trigger an acceleration into $46.16 to $46.94.

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