Crude oil prices dipped lower on Tuesday, setting near two-week lows after the International Energy Agency (IEA) revised down its prediction for global demand growth and said it expects U.S producers to raise output and gave an alarm that global oil markets will be oversupplied through the second quarter of 2018.
The IEA cut its oil demand growth forecast by 100,000 barrels per day (bpd) for this year and 2018, to an estimated 1.5 million bpd and 1.3 million bpd, respectively. The reported said, however, that OPEC member compliance with deal to curb output improved, rising to 96% in October from 87% in September.
The EIA International Energy Agency is due to release its data later on today.
Medium term analysis: Crude Oil 4hr technical chart has formed a “ascending broadening wedge” pattern. The chart clearly indicates the acquisition of bearish momentum over the market in the last few sessions which confirms that sellers have taken control as the interim line has broken out on the same. The market is expected to fall further on bearish trend and extend towards the support level near $54 for a retest.
Long term analysis: Crude Oil daily chart has formed a “Rising wedge” pattern. The previous session has been bearish and has broken the previous short-term support and thus confirms the sell signal in the market in upcoming sessions. The market could extend for a retest over the channel’s support line near 3550 in the upcoming weeks.
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