Crude Oil Price Update – Downside Momentum Targets $80.04 to $79.12

U.S. West Texas Intermediate crude oil futures are trading lower late in the session on Wednesday after a government report showed U.S. crude stocks rose more than expected in the most recent week, even as gasoline inventories hit a four-year low.

At 17:49 GMT, December WTI crude oil futures are trading $80.95, down $2.96 or -3.53%.

According to the U.S. Energy Information Administration (EIA), crude stocks rose by 3.3 million barrels during the week-ending October 29. Traders were looking for a 1.9 million barrel build.

Gasoline stocks fell to their lowest level since November 2017. U.S. market supply has tightened, with stocks at the Cushing, Oklahoma storage hub at their lowest in three years.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $80.58 will reaffirm the downtrend. A move through $85.41 will change the main trend to up.

The minor trend is also down. A move through $84.88 will change the minor trend to up and shift momentum to the upside.

On the upside, the nearest resistance is a pair of 50% levels at $82.10 and $83.00.

On the downside, the nearest support is $80.04 and $79.12. The latter is a potential trigger point for an acceleration into $76.91 and $76.23.

Daily Swing Chart Technical Forecast

The direction of December WTI crude oil into the close on Wednesday is likely to be determined by trader reaction to $82.10.

Bearish Scenario

A sustained move under $82.10 will indicate the presence of sellers. Taking our $80.58 will reaffirm the downtrend on the daily chart and confirm last week’s potentially bearish closing price reversal top.

After taking out $80.58, the selling pressure could slow at $80.04, $79.12 and $78.78. However, the latter is also a potential trigger point for an acceleration to the downside with $76.91 the next likely target.

Bullish Scenario

A sustained move over $82.10 will signal the presence of buyers. The first upside target is $83.00. Sellers could come in on the first test of this level, but overtaking it could fuel a spike into $84.88 – $85.41.