Crude Oil Alert: Potential Price Drop if $66.40 Support BreaksTechnical Analysis: Bearish Indicators for Crude Oil
On the 4-hour chart, crude oil has formed a Head and Shoulders pattern, a classic reversal signal indicating potential downward movement. The neckline is established at $66.40 per barrel. A decisive break below this level could trigger further declines, potentially leading to a significant drop in oil prices.
Fundamental Factors Reinforcing the Bearish Outlook
OPEC's Demand Forecast Reduction: OPEC has revised its global oil demand growth forecasts for 2024 and 2025, citing economic weaknesses in China and India. This marks the fourth consecutive downgrade for 2024, with demand now expected to rise by 1.82 million barrels per day (bpd), down from the previous forecast of 1.93 million bpd.
Saudi Arabia's Reduced Supply to China: Saudi Arabia plans to decrease its crude oil supply to China in December to approximately 36.5 million barrels, the lowest since July, due to weakened demand from the world's largest importer.
Saudi Aramco's Profit Decline: Saudi Aramco reported a drop in third-quarter profit to $27.56 billion from $32.58 billion a year earlier, attributed to lower oil prices and weak refining margins.