WTI Crude Oil (November)
Yesterday’s close: Settled at 67.67, down 2.02 [-2.90%]
Crude continued its fall yesterday as markets digested the new supply-side outlook.
We have some clarification out of OPEC+ this morning on their plans to increase production. Reports are stating that the Saudi “threat” of gaining market share was largely aimed at OPEC+ members Iraq and Kazakhstan. Those two have been the problem children within the group as they have continuously over-produced relative to their quota.
WTI futures are consolidating today and trading near unchanged at 67.67.
While we’re cautious on flat WTI longs, we are growing more bullish on the diesel complex and spreads. If client’s are looking for long exposure at these levels in Oil, the Heating Oil Z-H spread is a good place to start. Please reach out to your Blue Line Futures broker for additional context, and help with execution.
Although WTI is at a semi-attractive technical level for longs, we do not have confidence or clarity on what the supply side situation looks like at this time, skewing our risk outlook to the downside.
Outlook: Neutral / Bearish
WTI Crude Oil futures are attempting to stabilize at major three-star support around the $67 mark. However, this week’s textbook failure at 71.55, at the .382 retracement and defining a downtrend. Although it is important to reiterate the tremendous pockets of support denoted in our levels below, we see continued weakness until the bulls can achieve a close back above major three-star resistance at….
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