June ’19 crude oil futures stopped in their tracks at $64.65 per barrel while supply and demand news mix opinions. This resistance level has deflected prices from rising higher on the 8th, 9th, 10th, and again this morning. Prices have been trading in a range between $63.20 and $64.65 while the market decides whether this multi-month bull trend will continue. The current consolidation period reflects concerns based on whispers and rumors that OPEC may stop limiting their production or whether demand will stay hot or start to cool off. Overnight news has China’s export numbers up much higher than anticipated, high confidence in global economic sentiment, indication OPEC will continue production restraint until June, and weakness in the U.S. dollar. The fundamentals seem to be in place to continue trending bullish, if prices can break beyond $65 there is potential for a big move up. However, caution is to be paid to negative headlines as rumors could cause another pull back in price, and any true shifts in in the supply/demand dynamic could turn this trend back down.
Crude Oil Jun ’19 Daily Chart