[Bitop Market Review] Crude Oil Price Analysis on April 18, 2024
Oil Prices Decline Again, Today’s Crude Oil Market Analysis!
In early Asian trading on Thursday (April 18th), international oil prices hovered near their lowest levels in over two weeks. Oil prices fell 3% on Wednesday, following the release of EIA data last night, showing that U.S. crude oil inventories reached 2.735 million barrels for the week ending April 12th, roughly double the expected value. It’s worth noting that this indicator has exceeded expectations for the fourth consecutive week, putting pressure on crude oil prices as inventories remain high. Reduced demand for crude oil also contributes to downward pressure on prices.
Furthermore, the conflict between Iran and Israel has not escalated in the short term, with all parties showing relatively restrained stances. Both reduced geopolitical tensions and decreased demand would impact the rise in oil prices.
Looking at crude oil from a daily perspective, although there was a rebound after probing lower on Monday, subsequent gains did not materialize, and on Wednesday, prices fell by nearly 3%. Currently, there’s continuous breach of key support levels below, with no signs of stabilization, indicating a likely further downward testing of support levels. Key support near 80 is under scrutiny.
On the four-hour chart, crude oil saw consolidation at high levels on Wednesday, dropping from above 84 to around 82. Currently, the Bollinger Bands are diverging downwards, with oil prices running near the lower band. The MACD green energy column is significant, indicating a weak short-term trend. Overall, the operational strategy for crude oil today suggests focusing primarily on buying on dips, with short positions on high rebounds as a secondary consideration. Key resistance above is focused on the 84–84.6 range, while key support below is at the 81–81.6 range.
Disclaimer: The article is contributed by the market analyst from Bitop market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.
