Crude Oil Price Update – Enough Downside Momentum to Drive WTI into $59.58 – $57.64

U.S. West Texas Intermediate crude oil futures are trading lower on Tuesday as traffic resumed on the Suez Canal following several days of blockage and as the market shifts its focus on the upcoming OPEC+ meeting on supply curb policy.

At 11:26 GMT, May WTI crude oil futures are trading $60.46, down $1.10 or -1.79%. This is down from a high of $62.27.

With the refloating of the Ever Given container carrier that was blocked for almost a week, ships have resumed cruising through the Suez Canal, easing concerns over oil supply.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $57.25 will signal a resumption of the downtrend. The main trend will change to up on a move through $66.44.

The minor range is $66.44 to $57.25. Its 50% level at $61.85 stopped the rally earlier today.

The short-term range is $67.79 to $57.25. Its retracement zone at $62.52 to $63.76 is the primary resistance area.

The main range is $51.37 to $67.79. Its retracement zone at $59.58 to $57.64 is the next downside target and potential support area. This area is also controlling the near-term direction of the market.

Daily Swing Chart Technical Forecast

The direction of the May WTI crude oil futures contract is being controlled by the pivot at $61.85.

Bearish Scenario

A sustained move under $61.85 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to extend into $59.58. Counter-trend buyers could come in on the first test of this level, but if it fails then look for an acceleration into the Fibonacci level at $57.64, followed closely by $57.25 and $57.06.

Bullish Scenario

Overtaking $61.85 will signal the presence of buyers. This could lead to a labored rally with targets coming in at $62.27, $62.52 and $63.76. The latter is a potential trigger point for an acceleration to the upside.