The Oct WTI trading session had a high of 77.48 and a low of 75.4 and closed at 75.53, cash price is at 77.45, while open interest came in at 328,534.
Lowering on the day by 1.89 (2.44%). CLV briefly traded above its 50 day moving average (77.4) before trading back below, CLV closed above its 20 day (74.99) and above its 7 day (74.2) averages.
According to The American Petroleum Institute (API), crude oil inventories in the United States decreased by 3.4 million barrels for the week ending August 23, surpassing analysts’ expectations of a 3 million barrel drop. The market seemed to give back on yesterday’s geopolitical risks and the situation with Libya’s production shut down news this morning, in my opinion price increases have been constrained by persistent worries about the economic outlook (both domestic and abroad) and concerns that OPEC+ could boost oil supply. Goldman Sachs and Morgan Stanley have recently updated their oil forecasts, predicting a transition from a tight market to a potential surplus by 2025, driven by increased supply from both OPEC+ and non-OPEC producers. I think part of today’s sell off was profit taking after yesterday’s rally and some rolling into November and December contracts. Also today’s August Consumer Confidence report showed Americans’ short-term expectations for income, business, and the job market increased to 82.5. July’s figure was revised upward to 81.1 from an initial reading of 78.2, marking the end of a five-month period below 80.
– Jim
Jim Rinaudo
Associated Person
Direct: 1 312 957 4731
WALSH TRADING INC.
311 South Wacker Drive
Suite 540
Chicago, Illinois 60606
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.