Crude Oil Price Update – Strong Finish Puts Crude in Position to Turn Higher for Week

U.S. West Texas Intermediate crude oil futures are trading higher, headed into the extended close. Three consecutive days of higher closes has put the market in a position to turn higher for the week.

Crude was hit hard at the start of the week after President Trump criticized the OPEC-led strategy to cut production. However, it was able to recover most of those losses after Saudi Arabia’s influential oil minister brushed off pressure from Trump to “take it easy” on its price-boosting production cuts. A surprise drop in U.S. crude stockpiles further boosted prices.

Gains were limited on Thursday after a U.S. Energy Information Administration (EIA) report showed record U.S. production undermined OPEC-led output cuts. Additionally, renewed concerns over U.S.-China trade negotiations and another weak Chinese manufacturing report raised concerns over future demand.

At 19:54 GMT, April WTI crude oil is trading $57.25, up $0.31 or +0.54%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $57.81 will signal a resumption of the uptrend. A new main bottom was formed at $55.02. A trade through this bottom will change the main trend to down.

The short-term range is $57.81 to $55.02. Its 50% level or pivot is $56.42. This price provided support earlier in the session.

The main range is $51.62 to $57.81. If the trend changes to down then its retracement zone at $54.72 to $53.98 will become the primary downside target.

Daily Technical Forecast

Based on the current price at $57.25, the direction of the April WTI crude oil market into the close is likely to be determined by trader reaction to the downtrending Gann angle at $57.31.

Bullish Scenario

A sustained move over $57.31 late in the session will signal the presence of buyers. This could trigger a surge into the resistance cluster at $57.56 to $57.62. A close over $57.62 will put the market in a position to challenge last week’s main top at $57.81.

Bearish Scenario

A sustained move under $57.31 will signal the presence of sellers. If this move creates enough downside momentum, we could see a break into the short-term pivot at $56.42.

Last Week’s Close

Last week’s close at $57.26 is another key level to watch this late in the day and week. Overtaking this level will indicate investors are backing the Saudi oil minister’s strong stance against President Trump’s pressure to “take it easy” on the production cuts.