WTI Crude Oil (October)
Yesterday’s close: Settled at 70.34, down 3.21
The sharp risk-off move in global markets yesterday drove Crude Oil futures -5%, settling at $70.34. Today, there is a report that OPEC may be delaying production hikes which has put a bid under crude for the time being.
The macro environment poses another risk to crude pricing. The U.S. economy remains on shaky legs and China is yet to show signs of life. The risk-off trade will likely carry the week across all capital markets.
The reporting around the production delay is thin at best, caution is advised. Markets are grasping for reassurance from OPEC that the $70 a barrel range will be defended. If the reports are true, a rally back towards $80 is likely.
We’d advise selling rallies in the crude space until we get official word from OPEC. As long as production increases are green-lit by the group, the 2025 balance sheet will remain structurally bearish.
This morning’s early bounce in WTI Crude Oil futures failed right at our 71.46 level and now provides a clear line in the sand for the bears. Our momentum indicator now comes in at 70.45, and continued price action below here will encourage selling down to rare major four-star support at…
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