Crude Oil Price Update – Trade Through $81.71 Could Trigger Acceleration into Near-Term Target at $85.25

U.S. West Texas Intermediate crude oil futures edged higher on Thursday after top oil producer Saudi Arabia downplayed calls for additional OPEC+ supply and the International Energy Agency said surging natural gas prices could boost demand for oil among power generators.

Prices were also supported as traders largely shrugged off an unexpectedly large increase in U.S. crude inventories as refiners cut production in a generally slower period for those facilities.

At 20:45 GMT, December WTI crude oil is trading $80.96, up $1.14 or + 1.43%.

Oil demand is set to rise by half a million barrels per day (bpd) as the power sector and heavy industries switch from more expensive sources of energy, the IEA said, warning that the energy crunch could stoke inflation and slow world economic growth.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The main trend was reaffirmed on Thursday when buyers took out the previous main top at $81.08.

A trade through the next two main tops at $81.37 and $81.71 will indicate the buying is getting stronger. A move through $78.78 will change the main trend to down.

The nearest support is the first minor pivot at $77.91, followed by the second minor pivot at $76.98.

Daily Swing Chart Technical Forecast

The direction of December WTI crude oil market early Friday is likely to be determined by trader reaction to $80.91.

Bullish Scenario

A sustained move over $80.91 will indicate the presence of buyers. If this move creates enough upside momentum then look for a possible surge into the pair of main tops at $81.37 and $81.71.

Taking out $81.71 could trigger an acceleration to the upside with the next major target coming in at $85.25.

Bearish Scenario

A sustained move under $80.91 will signal the presence of sellers. The first downside target is a minor pivot at $79.94. If this fails then look for a move into the main bottom at $78.78.

Taking out $78.78 will change the main trend to down. This could trigger a break into a pair of 50% levels at $77.91 and $76.98.