FxNews—WTI crude oil futures dipped below $72.2 per barrel on Friday, though they are set to post a weekly increase as supply risks ease. Investors are also closely watching the impact of the upcoming Trump administration.
Hurricane Rafael interrupted U.S. crude production and is gradually shifting westward over the Gulf of Mexico, likely reducing its influence on oil fields.
China Oil Imports Drop and U.S. Stocks Rise, Pressuring Prices
Additional downward pressure on prices came from a 9% drop in China’s crude oil imports in October—the sixth year-on-year decline in a row—and rising U.S. crude stocks. Analysts anticipate that Trump’s policies could decrease oil prices by increasing U.S. production and implementing tariffs that might slow China’s economy, the world’s top oil importer.
However, the administration might also enact stricter sanctions on oil-producing nations like Iran and Venezuela, potentially affecting supply.
Crude Oil Technical Analysis – 8-November-2024
Crude Oil prices dipped from $72.25 after bulls failed to stabilize the price above the October 24 high. This drop was anticipated because the RSI 14 signaled bearish divergence, as the Awesome oscillator histogram was approaching the signal line from above.
The immediate support is $69.7 (the October 24 low). From a technical perspective, the current downtick momentum could extend to $68.3 if bears close and stabilize the price below the immediate support. Furthermore, if the selling pressure exceeds $68.3, the next bearish target could be $66.8.
Please note that the immediate resistance is at $72.25 (the October 24 high). The bearish outlook should be invalidated if Crude Oil prices exceed the immediate resistance.
- Support: 69.7 / 68.3 / 66.8
- Resistance: 72.25 / 73.4 / 75.8
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
