WTI Crude Oil Daily Analysis – August 30, 2017

Crude oil futures dipped lower on Tuesday and continue to trade lower on Wednesday morning as investors are anxious over a drop in demand for U.S. oil after Hurricane Harvey knocked down several refineries in Texas.

3 million bpd of U.S. refineries have been shut down approximately and more shutdowns are expected.

According to analysts – the impact of lower crude demand at refineries would balance the fall in crude oil production.

The EIA inventory report is due to be released today 14:30 GMT.

Technical Outlook

Short Term View

Crude oil selling pressure continues towards $45.76 level as both short term and long term pattern indicates a bearish momentum.

The 4H intraday chart has formed “Descending broadening wedge pattern” as prices broke below support line at $47.40. Crude oil might retrace towards the slope line at $46.50.

Long-term View

The daily chart has formed a Megaphone chart pattern as prices failed to hold above resistance line at $50. Currently, prices trade below the 50-day moving average at $46.20 which indicates a bearish momentum.

Resistance holds on the long term 100-day moving average at $47.60 and additional resistance on the 200-day moving average at $49.63.