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Energy

Crude Oil Reaching Critical Levels

Posted 06/28/2019 7:37AM CTMichael O'Donnell

As of Thursday, the August crude oil contract is little changed on the day following this week’s draws in inventory in both the API and EIA reports, possibly as the market anticipates any developments at the G20 and with Iran and the Strait of Hormuz.

Also, of note, at $59.35, the market is not far from the psychologically important $60 level and a number of key moving averages, pictured below. In addition to this week’s reports and any developments this weekend, the politics around the next OPEC meeting, with the date already having been changed, could provide further uncertainty in addition to the changes in U.S. production and any further infighting between OPEC and non-OPEC members.

Crude Oil Aug ’19 Daily Chart

Crude Oil Aug '19 Daily 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.