On Monday crude oil continued last weeks slide lower down to $65.15 before closing up off its lows at $66.85 on the day. Mid-week we saw a recovery with a weekly high of $69.62 but at this time it looks like it will end the week on a weaker note. Pressure is being brought on by talks that OPEC will once again increase production and also that a ramp up in Covid outbreaks will slow the demand side of things. Despite these pressures we saw Sept crude bounce off support at $65 and trade back to the middle of the $65-$75 range. There are some global demand discrepancies between OPEC and the International Energy Agency which is causing the market to have some uncertainty. US production also remains lower than normal. Resistance comes in right above the $70 level and a breakthrough of that is needed to see crude oil push back to recent highs of $75. If wider global shut downs due to Covid or increased production from OPEC nations come to fruition, expect to see lower trade back down with $65 and $61 as the next downside targets.

Crude Oil Sep ’21 Daily Chart
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Tyler Herrmann

Senior Market Strategist
Tyler attended Kansas State University where he majored in Agricultural Economics. He started his career in the futures industry with an IB in North East Kansas where he worked with farmers and cattleman to hedge their risk in the market and protect profits with a variety of futures and options strategies. Most recently Tyler has joined RJO Futures as a market strategist.
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