OPEC has announced that crude oil demand is expected to decline next year as rivals will pump more, pointing to a market surplus in 2018. As a result,
OPEC has announced that crude oil demand is expected to decline next year as rivals will pump more, pointing to a market surplus in 2018. As a result, crude oil prices dropped early on Thursday to trade at $45.16.
Technical Outlook
Crude oil prices are in consolidating mode which reflect the indecision towards further direction. However, prices were trading around resistance level at $46.50 yesterday when the inventory report was released as well as during the previous week. We could noticed that the 46.50 area is a strong resistance level to break.
Crude Oil 4H Chart
Crude oil 4H chart has formed the “Round and Bottom”pattern.This pattern indicates a bullish momentum. Once it breaks the neckline level at $46.11 and close a candle above this price, then prices are expected to reach the $47-48 levels. Stop loss could be placed below the neckline of the pattern at $44.90.
