Provided by Bloomberg
WTI Crude Oil Futures (February)
Yesterday’s Settlement: 69.62, down -0.48 [-0.68%]
After starting the morning strong, WTI Crude Oil futures moved lower on thin trading and light news-flow yesterday. Futures made a high of 70.75 yesterday, just below our key three-star resistance level of 70.82.
Today, futures are higher by +0.81 [+1.16%] to 70.43
Tensions in the Middle East are driving crude higher this morning. Yesterday, Israel struck Houthi targets in Yemen and stated that these attacks were just the beginning of their offensive there.
These attacks, and assumptions that incoming president Donald Trump will tighten sanctions on Iran upon inauguration are resulting in additional risk premium being built into the futures markets this morning.
Estimates for today’s EIA report are as follows [thousand bbls]:
- Crude Oil: -600
- Gasoline: -500
- Distillates: -1,000
- Refinery Utilization: -0.40%
Technical Analysis
While we settled below our key three-star support zone of 69.73-70.04 yesterday, geopolitical risks have pushed prices back up above that level this morning. Yesterday’s session was disappointing for the bulls. Our pivot and point of balance remain at Tuesday’s high of 70.43. We are again looking for a settlement above…
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