Crude Oil Price Update – Long-Term 50% level at $41.72 Possible Trigger Point for Upside Acceleration

U.S. West Texas Intermediate crude oil futures are moving higher late in the session on Tuesday after state oil company Saudi Aramco said it will delay the release of its September official selling prices (OSPs) for crude until early next week, a person familiar with the matter said on Tuesday.

At 18:06 GMT, September WTI crude oil is trading $41.92, up $0.91 or +2.22%.

Traders are saying that positive economic news on Monday is also providing support by offsetting concerns that a fresh wave of COVID-19 infections will hamper a global demand recovery just as major producers ramp up output.

Later today at 20:30 GMT, the American Petroleum Institute (API) will release its latest inventories data. Traders expect gasoline and distillate inventories to rise due to lower demand.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up when buyers took out $41.93 on Tuesday. A trade through $38.72 will change the main trend to down.

On the upside, the key level to watch is the long-term 50% price at $41.72.

On the downside, support is a retracement zone at $39.92 to $39.30.

Short-Term Outlook

The direction of the September WTI crude oil market into the close will be determined by trader reaction to the major 50% level at $41.72.

Taking out $41.72 could trigger an acceleration to the upside with $42.51 the next likely upside target.

If $41.72 fails as support then look for the selling to possibly extend into the retracement zone at $39.92 to $39.30.