Crude Oil Price Update – Weakens Under$67.63, Strengthens Over $69.02

U.S. West Texas Intermediate crude oil futures are inching lower on Thursday shortly before the regular session opening. The price action suggests the buying from earlier in the week may be cooling amid rising COVID-19 infections and renewed supply from Mexico following a well fire that curtailed production.

At 11:45 GMT, October WTI crude oil is trading $67.99, down $0.67 or -0.98%.

Underpinning prices is Wednesday’s weekly U.S. Energy Information Administration (EIA) report from the week ending August 20 that showed American crude inventories fell for a third consecutive week and overall fuel demand increased the most since March 2020.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum has been trending higher since the formation of the closing price reversal bottom on August 23.

A trade through $69.39 will change the main trend to up. A move through $61.74 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The short-term range is $73.52 to $61.74. Its retracement zone at $67.63 to $69.02 is potential resistance. The market is currently testing this area.

On the downside, support is the retracement zone at $65.51 to $63.32.

Daily Swing Chart Technical Forecast

The direction of the October WTI crude oil futures contract on Thursday is likely to be determined by trader reaction to $67.63.

Bullish Scenario

A sustained move over $67.63 will indicate the presence of buyers. Taking out yesterday’s high at $68.54 will indicate the buying is getting stronger with the next likely targets a short-term Fibonacci level at $69.02, followed by a main top at $69.39.

A trade through $69.39 will not only change the main trend to up, but it could trigger an acceleration to the upside with the next major target coming in at $73.52.

Bearish Scenario

A sustained move under $67.63 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the main 50% level at $65.51.