RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Energies

Oil Continues to Slide Lower

Posted 10/18/2018 9:19AM CT | Phillip Streible

Oil futures continue to sell off as inventories rise and liquidation from speculators continues. We saw the fourth straight week of inventory builds last Wednesday, with a weekly build of 6.49 m/b. Total inventory stocks are currently 416.441 m/b vs the 5-year average of 413.389 m/b. There was a lot of discussion about how the missing journalist could create tensions between the U.S. and Saudi Arabia, however, it should have no impact on oil supplies. One statistic to pay attention to is oil exports to China. Currently the U.S. has completely halted exports to the largest oil importer while Saudi Arabia and Russia have picked up the slack, therefore, I don’t see any reason for supplies to decline anytime soon. Looking at the technicals, crude oil has completely broken the $70 psychological support and looks to decline to the mid 60’s.

Crude Oil Dec ’18 Daily Chart

Crude Oil Dec '18 Daily Chart

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Phillip Streible

Senior Market Strategist
Early in his career Phillip began trading his own account as a screen trader focusing on the metals, grains and stock indices. He then became a Series 7 licensed financial consultant with A.G. Edwards. Later, he expanded his trading experience into a Series 3 licensed commodity broker with Investment Analysis Group. Most recently he was a senior market strategist at MF Global before joining RJO Futures in October 2011 as a senior commodities broker. As a senior commodities broker his goal is to show clients how to anticipate, recognize and react to bull and bear market conditions through the use of technical analysis techniques that help them to define risk.
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