WTI Crude Finds Support Amid OPEC+ Deliberations and Tariff Buzz
WTI Crude Oil Futures (January)
Yesterday’s Settlement: 68.77, down -0.17 [-0.25%]
WTI Crude Oil futures were marginally weaker yesterday on a stronger dollar and a relatively weak commodity trade outside of the rebound in precious metals.
Today, Crude oil prices are higher by +0.43 [+0.63%] to 69.21.
Buoying prices are rumors that OPEC+ will further support oil prices by once again delaying oil output hikes now scheduled to start in December. Market chatter is that the Saudi’s are pushing OPEC to delay the hikes through the end of Q1 2025.
If true, this is a fundamentally bullish catalyst with legs as the market would more than likely remain in a deficit through the end of March. The group is scheduled to meet Sunday, December 1st for their quarterly meeting.
Other headlines include tariff news from the Trump camp, which clarified that crude oil will not be excluded from Canadian and Mexican tariffs – a potentially bullish catalyst for already low domestic supply levels. The Israel – Hezbollah ceasefire went into effect earlier this morning which has now been priced into markets multiple times.
The dollar is weaker today, led by a 1% strengthening in the Yen. The Euro is also stronger by 0.51% while the Chinese Yuan is relatively flat. The U.S. releases a slew of data today, including Core PCE figures, which are estimated to accelerate to +2.8% YoY [+2.7% previous].
{OPEC+ Production Details}
Yesterday’s low of 68.05 was well below our key 3-star support level of 68.49-68.75 but prices rallied to close above support and maintain a friendly consolidation. As markets shift their focus away from the Lebanon ceasefire and to the OPEC meeting Sunday, the rumored delay in supply hikes should skew price action bullish at these price levels. Our pivot and point of balance for the day is….
Want to stay informed about energy markets?
Subscribe to our daily Energy Update for essential insights into Crude Oil and more. Get expert technical analysis, proprietary trading levels, and actionable market biases delivered straight to your inbox. Sign up now for free futures market research from Blue Line Futures!
Sign Up for Free Futures Market Research – Blue Line Futures
Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.
With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500
Performance Disclaimer
Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.
One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.
On the date of publication, Bill Baruch did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.