Crude Oil Price Update – Close Under $62.29 Puts Market in Weak Position

U.S. West Texas Intermediate crude oil futures are trading lower late in the session on Tuesday as traders await the latest inventories news from the American Petroleum Institute (API) at 20:30 GMT.

Earlier in the session, the market pulled back from a one-month high, on fears that India, the world’s third-biggest oil importer, may impose restrictions as coronavirus infections and deaths soar in the country.

At 20:18 GMT, June WTI crude oil futures are trading $62.57, down $0.86 or -1.36%.

Crude prices rallied early after Libya declared force majeure on exports from the port of Hariga and said it could extend the measure to other facilities, citing a budget dispute.

Finally, the American Petroleum Institute’s report on U.S. supplies will be released at 20:30 GMT, with an expectation that U.S. crude stockpiles are expected to drop by 2.9 million barrels.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $64.38 will change the main trend to up. A move through $57.29 will signal a resumption of the downtrend.

The minor trend is down. In a volatile trade on Tuesday, the minor trend turned up early in the session, but turned down later.

The short-term range is $67.29 to $57.29. The market is currently testing its retracement zone at $62.29 to $63.47.

The minor range is $57.29 to $64.38. Its 50% level at $60.83 is potential support.

The main range is $51.04 to $67.29. Its retracement zone at $59.17 to $57.25 is major support. It’s also controlling the near-term direction of the market.

Daily Swing Chart Technical Forecast

The direction of the June WTI crude oil into the close is likely to be determined by trader reaction to $62.29.

Bullish Scenario

A sustained move over $62.29 will indicate the presence of buyers. This could trigger a rally into $63.47, followed by the main top at $64.38. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under $62.20 will signal the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into the pivot at $60.83. Buyers could come in on the first test of this level, but if it fails then look for the selling to possibly extend into $59.17 over the near-term.