The Oct WTI trading session closed at 69.20, had a high of 71.46, a low of 6 and cash price is at 70.34 (-3.24), while open interest came in at 270,539. Lower on the day by -1.14 (-1.62%). CLV traded below its 50 day (77.84), its 20 day (75.04) and its 7 day (73.78) moving averages. Took out the $70 hurdle and broke through the descending triangle pattern (putting on more technical pressure), trading to its 9 month lows, year to date U.S. crude has dropped 3.1%. Oil prices have come under pressure as weak manufacturing activity in the U.S. and China has rekindled concerns about a potential economic slowdown. On the bullish side there’s rumors via Reuters this morning that OPEC+ is discussing delaying their proposed 180,000 bpd October production cuts, however if they decide to proceed as planned I think this will heavily contribute to the bearish view pervading most of the market. According to the International Energy Agency, global oil markets are expected to experience a surplus of over 1 million barrels per day in the first quarter. This surplus arises because the surge in production from the US, Guyana, and Brazil is exceeding the growth in demand. Yesterday Libya’s two legislative bodies agreed to collaboratively appoint a central bank governor within the next 30 days, a step that could help resolve the current dispute and put their crude production back online. Tomorrow EIA numbers are released. Over the next two days we’ll also get jobless claims and unemployment figures, providing further insight into the strength/weakness of the U.S. economy.
