Crude Oil Falters Amid Inventory Build and Global Uncertainty

March 1, 2018 12:50PM CST

As of Thursday morning, crude oil was trading at the lowest level in a week following Wednesday’s EIA report.  The number showed a build in crude and gasoline inventories in addition to the dollar being somewhat stronger and stock markets monitoring the new Fed chair’s testimony.

It would seem the market could test the mid-February lows which coincide with the highs of late November and early December in the April contract.  While the week has been a good one for the downside, should the price action continue it could lead to some profit taking and offsetting before the weekend as well, given the pace of downward trading Wednesday and Thursday morning.  The market did seem to recover from the morning’s low of $60.18 later in the morning.

Moving forward, markets will also be monitoring European election outcomes, interest rate decisions and whether the stock market and global economy are subject to further volatility.

Clients on our desk work with calendar spreads, option spreads and outright future strategies amid such market activity.  To discuss how to incorporate such strategies in your portfolio, please contact me at your convenience.

Crude Oil Apr '18 Daily Chart


RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that RJO Futures believes to be 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 judgement 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.

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.

Distribution in some jurisdictions may be prohibited or restricted by law. Persons in possession of this communication indirectly should inform themselves about and observe any such prohibition or restrictions. To the extent that you have received this communication indirectly and solicitations are prohibited in your jurisdiction with registration, the market commentary in this communication should not be considered a solicitation.