Crude Oil Market Analysis:

Oil prices tumbled in early Asian trade on Tuesday, October 15th, with WTI crude currently trading around $71.62 per barrel. Reports that Israel will avoid striking Iranian energy targets triggered a sharp sell-off in US crude futures, easing concerns about escalating tensions in the Middle East.  Furthermore, OPEC's downward revision of its global oil demand growth forecast for the third consecutive month added to the bearish sentiment, raising concerns about a potential supply glut.

Brent crude futures were down $2.43, or 3.12%, at $75.26 a barrel, while US West Texas Intermediate (WTI) crude futures fell $2.23, or 3.02%, to $71.62 a barrel.

OPEC released its monthly report on Monday, lowering its 2024 global oil demand growth forecast from 2 million barrels per day (bpd) to 1.9 million bpd.  Despite this downward revision, OPEC's demand growth projection remains significantly higher than those of the EIA and the International Energy Agency.

Crude Oil Technical Analysis:

Daily Chart:Oil prices faced further pressure at the $74.7 resistance level yesterday, leading to a bearish breakdown and a close near the day's low.  The decline accelerated overnight, with prices breaching the $72 support level and reaching a low of $71.4.  The daily candlestick pattern shows a bearish engulfing pattern, confirming the downward momentum.

The daily chart reveals that oil prices are under pressure, with the Bollinger Bands narrowing and starting to point downwards. Prices are trading below the middle band, indicating a continuation of the bearish trend.  The current price action suggests a potential "one-two" bearish continuation pattern.

4-Hour Chart:The 4-hour chart highlights the dominance of the bears, with oil prices returning to a downward channel. The moving averages are fanning downwards, confirming the short-term bearish momentum.

Overall:The short-term outlook for oil favors buying on dips with selective selling on rallies.

Key Resistance Levels: $73.0 - $73.5

Key Support Levels: $70.5 - $70.0

Disclaimer: None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.