WTI Crude Oil Daily Analysis – July 18, 2017

Crude oil futures closed lower on Monday as the glut in the industry continued to set the tone. The ‘Black Gold’ trades lower on Tuesday morning as well with a slight drop of -0.24%.

The API (American Petroleum Institute) inventory report is due to be released later on today. A decline of 3.740 million barrels is expected.

Technical outlook

Crude oil prices consolidated and closed Monday’s session at $46.02. The crude oil 4H chart has formed “Inverse Head and shoulder” pattern which indicates a bullish movement. As shown in the chart, crude oil prices broke above the neckline and the next target will be at $47.50-$49 levels.

A strong support is expected at $45.80 as a break below the support will pull prices towards $44.50-$45.