Crude Oil Price Update – Mixed Short-Term Fundamentals; Strengthens Over $77.03, Weakens Under $76.11

U.S. West Texas Intermediate crude oil futures are trading slightly lower shortly before the mid-session on Thursday amid mixed fundamental news. Helping to put a cap on gains is a rise in U.S. crude and energy products, reports that the U.S. is considering selling oil from its strategic reserves and talk that Russia may try to stabilize the natural gas market.

Underpinning prices are expectations of higher demand due to the switching to crude oil from natural gas for power generation in Europe. Some experts are estimating that demand could jump as high as 500,000 barrels per day if the power plants use crude for power.

At 14:35 GMT, December WTI crude oil futures are trading $77.03, down $0.03 or -0.04%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower following the confirmation of Wednesday’s closing price reversal top.

A trade through $79.39 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a trade through $72.82.

The first minor range is $79.39 to $74.67. Its pivot at $77.03 is potential resistance.

The second minor range is $72.82 to $79.39. The market is currently straddling its pivot at $76.11.

The short-term range is $69.05 to $79.39. Its retracement zone at $74.22 to $73.00 is potential support.

Daily Swing Chart Technical Forecast

The direction of the December WTI crude oil market into the close on Thursday will be determined by trader reaction to $77.03 and $76.11.

Bullish Scenario

A sustained move over $77.03 will indicate the presence of buyers. If this move creates enough upside momentum, buyers could make a run at the main top at $79.39.

Bearish Scenario

A sustained move under $76.11 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into $74.22, $73.00 and $72.82.

Taking out the main bottom at $72.82 will change the main trend to down.