WTI Crude Holds Neutral Bias Amid Volatile Backdrop

WTI Crude Oil Futures (June Future)

Friday’s Settlement: 63.02, up +0.23 [+0.37%] for the day, down -0.99 [-1.57%] for the week

Last week WTI Crude Oil fell on OPEC+ supply concerns and anxiety over global growth as progress regarding trade deals has stalled.

Kazakhstan responded negatively to OPEC+ compensatory cuts, saying they would like to work with the group, but would put their country first and maintain production levels. OPEC+ has yet to give an official word on how they will deal with Kazakhstan’s overproduction.

Until we get further clues on how OPEC will deal with this situation, we remain neutral.

Today, Crude Oil is down -0.07 [-0.11%] to 62.95

Oil is trading weaker this morning after popping in the overnight sessions as traders digested news of port explosions in Iran over the weekend. Concerns over the ongoing trade war are dragging futures lower.

This week, BP, Shell, Chevron, and Exxon will release earnings alongside a slew of important macroeconomic data. We also expect to hear some more information from OPEC on how they’ll deal with Kazakhstan.

Ukraine has announced a request for a full 30 day ceasefire this morning which is starting to move futures markets.

Technical Analysis:

Futures failed at our longer-term pivot zone of 63.53-63.81**. We expect ssupport around 61.05** to hold and for the chart to continue to consolidate as long a major headlines don’t lurch the markets up or down into new trading zones.

We remain neutral until we get a better idea of how OPEC will respond. Volatility will likely stay elevated as headline risk can move this market significantly in both directions.

For intraday trading, our pivot and point of balance is set at…

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