The Oct WTI trading session closed at 70.22, had a high of 74.41, a low of 70.1 and cash price is at 73.57 (-2.38), while open interest came in at 271,991. Lower on the day by a whopping -3.33(4.53%). CLV traded below its 50 day (78.09), its 20 day (75.23) and its 7 day (74.6) moving averages. We’ve now traded below the $72 support line and I think if the API numbers are not bullish tomorrow we may see further losses below $70 the rest of this week, especially if we also get more information on OPEC+ cutting back on their production cuts. As for tomorrow I think we could see some gains overnight after such massive day to the downside here today, I should note the stock Indexes also suffered across the board. OPEC’s oil production dropped in August to its lowest level since January, according to a Reuters survey released on Monday. The decrease to 26.36 million barrels per day, down by 340,000 bpd from July, was driven by disruptions in Libyan supply and ongoing voluntary cuts by other OPEC members and the broader OPEC+ alliance. This marks the lowest output for OPEC recorded since January 2024. However, the eight major OPEC+ producers are anticipated to begin scaling back their voluntary output reductions with a 180,000 barrels per day increase starting in October. More bearish news for crude out of China as the National Bureau of Statistics reported on Saturday that China’s August factory activity shrank for the fourth consecutive month, signaling potential difficulties for the world’s second-largest economy in achieving its annual growth target. The NBS reported that the official manufacturing purchasing managers’ index dropped to 49.1 in August, down from 49.4 in July for China. Economists from banks such as UBS Group AG and JPMorgan Chase & Co. anticipate that China will likely miss its growth target of approximately 5% for the year. In the Middle East Reuters reported that Houthi rebels attacked two crude oil tankers in the Red Sea on Monday. Tomorrow API numbers are released.
