Crude Oil Market Analysis:

Oil prices were range-bound in early Asian trade on Monday, October 21st, with WTI crude trading around $68.90 per barrel.  Crude oil futures fell more than 2% on Friday, capping a weekly loss of over 7%, as investors digested weaker-than-expected economic growth in China and a mixed outlook for the Middle East.  Last week, Brent crude fell over 7% and US crude declined more than 8%, marking their biggest weekly losses since September 2nd, when OPEC and the IEA lowered their global oil demand forecasts for 2024 and 2025.  

Brent crude futures settled at $73.06 a barrel on Friday, down $1.39 or 1.87%. US crude futures settled at $69.22 a barrel, down $1.45 or 2.05%.

Data released on Friday showed that China's economic growth slowed in the third quarter, suggesting that authorities may need to accelerate the implementation of stimulus measures to achieve their annual growth target. Expectations of further stimulus have boosted risk appetite, lifting global equity markets, with Chinese stocks leading the gains.  This positive sentiment could provide some support to commodities and oil prices in the near term.  

Market participants will be closely watching developments in Chinese equity markets and overall market sentiment. Geopolitical developments will also remain in focus.

Crude Oil Technical Analysis:

Daily Chart:Oil prices were range-bound on Friday, with resistance seen near $71.3 per barrel and support around $70.0.

The daily chart shows that oil prices have entered a consolidation phase after the recent breakdown.  This suggests a period of intense struggle between bulls and bears.  However, with the bulls failing to mount a significant recovery, a further decline and a potential acceleration of the downtrend is possible.  The large bearish candle following the recent plunge highlights the bearish sentiment.

4-Hour Chart:The 4-hour chart shows that oil prices are trading within a range, with the Bollinger Bands pointing downwards.  Resistance is seen near $71.3, with a break above this level potentially opening the way for a test of the previous breakdown point around $72.0.

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

Key Resistance Levels: $71.0 - $71.5

Key Support Levels: $69.0 - $68.5

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