[Bitop Market Review] Crude Oil Price Analysis on April 24, 2024
API Inventory Decrease Leads to Oil Price Increase, Today’s Crude Oil Market Analysis!
In the late Asian session on Wednesday (April 24th), US crude oil fluctuated and rose, currently trading near $83.65 per barrel. The oil price rose by over $1, mainly due to the US dollar index falling to its lowest level in over a week, as investors shifted their focus from Middle Eastern geopolitical issues to the global economic situation. Additionally, the latest API data shows that US crude oil inventories decreased by 3.23 million barrels last week, the largest drop in nearly six weeks, providing support for oil prices.
More noteworthy is the recent rebound in the term structure of crude oil markets in several trading months, reflecting relatively low pressure on the supply and demand side of the current crude oil market. This performance also indicates a solid foundation for oil prices to maintain a relatively strong pattern, with minimal risk of a sharp decline in the short term. However, after the recent significant cooling of geopolitical risks, especially after last Friday’s impact, the market’s bullish sentiment has significantly receded, and it is expected that investors will remain cautious about aggressively chasing higher oil prices in the short term.
Crude oil experienced a round of rebounding after probing lower yesterday, with daily candles stabilizing around the $80.70 low point for two consecutive sessions. Although it did not break below after the third probe yesterday, it stabilized and rebounded at the end of the session, regaining some lost ground. The daily candle formed a bullish candle, breaking the pattern of further consolidation, showing slight signs of stabilization and rebound. A secondary rebound was formed on the 4-hour chart, with local support formed around $80.70-$81.0. Since short-term support has not been broken, there is currently no sign of continued downside momentum, and we can observe consolidation above the low point for now.
On the 1-hour chart, the rebound stabilized above the midline and broke through the upper line, suggesting a bullish outlook in the short term with the midline support around $82.50-$82.60, potentially reaching short-term bullish targets. Overall, today’s crude oil operation suggestion focuses on buying low on pullbacks, with short-term shorts on rebounds as secondary strategies. Short-term resistance is around $84.5-$85.0, and short-term support is around $82.5-$82.0.
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.
