Oil Prices Are Firming Up | RJO Futures

February 6, 2017 2:48PM CST

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 thaberkorn@rjofutures.com or call me directly at 312-373-5087. 

 

Crude Light Daily Chart


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