Crude oil futures retreated today, as concerns of a potential climb in U.S. crude output and strength in the U.S. Dollar Index have pressured prices on the heels of a more than 1% gain in prices last week.
Traders should be ready for more upside very soon in WTI crude oil. As the market continues to find momentum, it needs to close and hold above $54/$55. The market is clearly trying to build as policy changes are being made daily in the Trump administration. A few other factors that will continue to support oil prices are increased conflict with the Iranians over their missile program, and any conflict that arises in the South China Sea.
Earlier crude oil prices had tapped highs above $54, finding support as the U.S. government is poised to roll back the Dodd-Frank financial reform law, which includes transparency on payments by energy firms to foreign governments. If that is approved, the change would mean fewer restrictions on American energy companies investing in foreign countries.
Crude oil has not been the easiest of markets to trade over the past few weeks. I think traders should consider thier positions in anticipation of the weekly EIA energy report coming out on Wednesday. You can reach me at firstname.lastname@example.org or call me directly at 312-373-5087.
Series 3 Licensed
Senior Market Strategist
Tim started his career trading with a group of technical traders trading a commodities fund for five years. After that he started trading the 5-year and 10-year Treasury note futures at the Chicago Board of Trade. Since then he has become an all-around technical and fundamental trader, and uses his prior knowledge to help others trading the futures markets as a commodities broker.