Crude Oil Price Update – Lower for the Week; Strengthens Over $83.10, Weakens Under $82.10

U.S. West Texas Intermediate crude oil futures fell sharply on Wednesday, putting the market in a position to open lower on Thursday. A government report showing a bigger than expected crude oil inventory build was the catalyst behind the sell-off. Perhaps helping to soften the blow was another drop in gasoline stocks.

On Wednesday, December WTI crude oil futures settled at $82.07, down $2.58 or -3.05%.

Crude oil inventories rose by 4.3 million barrels the week-ending October 22, according to the U.S. Energy Information Administration (EIA), more than the expected 1.9 million-barrel gain. Gasoline stocks dropped by 2 million barrels, lowering them to levels not seen in nearly four years, as U.S. consumers grapple with rising prices to fill their vehicles’ tanks.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $85.41 will signal a resumption of the uptrend. A move through $80.78 will change the main trend to down.

The minor range is $80.78 to $85.41. Its 50% level at $83.10 is resistance.

The second minor range is $78.78 to $85.41. The market closed on its pivot at $82.10.

Additional support is a pair of pivots at $80.04 and $79.12.

Daily Swing Chart Technical Forecast

The direction of the December WTI crude oil market early Thursday is likely to be determined by trader reaction to $82.10.

Bearish Scenario

A sustained move under $82.10 will indicate the presence of sellers. This could trigger an acceleration to the downside with the next target the main bottom at $80.78, followed by a pair of 50% levels at $80.04 and $79.12.

Bullish Scenario

A sustained move over $82.10 will signal the presence of buyers. The first upside target is the 50% level at $83.10. Overcoming this level could trigger a further rally into $83.71.

Overtaking $83.71 will indicate the buying is getting stronger. This could trigger a further rally into the main top at $85.41.