WTI Crude Holds Steady Near Key Support as Volatility Looms Ahead of Expirations and EIA Report

Yesterday’s Close: Settled at 70.39, -0.19 [-0.27%]

WTI Crude Oil Futures are trading up +0.23 [+0.34%] to 70.63 this morning after a tame day yesterday. Crude has steadied after four consecutive days of declines. Last night, Chinese economic officials released details related to housing stimulus that failed to spark excitement—commodities, which had rallied into the announcement, largely pared gains.

Last night, Eurozone YoY CPI came in weaker than expected at +1.7% vs +1.8% estimates and U.S. Weekly Jobless fell 19k to 241k and was lower than expected. 

The ECB cut interest rates 25bps last night, in line with expectations. The U.S. Dollar index is showing strength once again this morning  

Within options markets, significant open interest expires today which could fuel some volatility. Also slated for today is the weekly EIA report, estimates are as follows [thousand bbls]:

• Crude Oil: +1,500
• Gasoline: -2,000
• Distillates: -2,500
• Refinery Utilization: -0.50%

The API report released last night showed the following [thousand bbls]:

• Crude: -1,600
• Gasoline: -5,900
• Distillates: -2,700
• Cushing: 400

Monitoring of price action is key as WTI Crude Oil Futures sit right near a rare four-star support level of 70.10 – 69.83. In the short to medium term, we maintain a bullish outlook with a target of the 71.37 – 71.53 level. 

Yesterday, we noted that price action below our initial pivot and point of balance at 70.75-70.96 would likely keep the sellers in the driver’s seat and we moved our new pivot level to 70.65. While we continue to favor long positioning today, we have moved our pivot and point of balance lower to…

Want to stay informed about energy markets? 

Subscribe to our daily Energy Update for essential insights into Crude Oil and more. Get expert technical analysis, proprietary trading levels, and actionable market biases delivered straight to your inbox. Sign up now for free futures market research from Blue Line Futures!

Sign Up for Free Futures Market Research – Blue Line Futures

Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.
With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500
Performance Disclaimer
Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.
One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.