RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Energies

Crude Oil Poised for Possible Major Move

Posted 03/15/2018 1:59PM CT | Michael O'Donnell

As of Thursday afternoon, April crude oil was trading near $61.30 as the market weighs a number of significant developments and appears to be approaching a crucial point amid relative consolidation for this market.

Wednesday morning’s EIA report showed a large build in inventories of 5 million barrels amid a time of year the refineries are switching their blends.  This corresponded with large draws in gasoline and distillates of 6.3 million and 4.4 million barrels, respectively.

While the market took the build as bearish selling off initially Wednesday post report, traders also have considered the decline from the level last year and tightness of compared to years past.  We must also consider the historical highs in terms of US production and murmurs that OPEC quota and corresponding compliance may change should their objective be met or from such US production.

One thing that is for certain is the fact the market has simultaneously traded with higher lows and lower highs for some time now.  For some, this may represent coiling price action prior the market finding further direction.

To discuss this setup and ways to position for upcoming trade in your account, please contact me at your convenience.

Crude Oil Apr ’18 60min Chart

crude_oil_apr18_60min_chart

Michael O'Donnell

Mike started his career in the markets on the floor of the Chicago Board of Trade as a trade checker for a local market maker in the Dow Futures pit. This led to interning with an independent introducing broker and going on to work with a number of market participants including: speculating clients, hedge clients, introducing brokers, futures commission merchants, commodity trading advisors, proprietary traders, trading educators, system creators, and a number of international financial market participants.