Please note that due to market volatility, some of the key levels may have already been reached and scenarios played out.
Trading position
- Crude Oil [CLX21] Next support around $69.00-69.36 – Lower support around $67.18-67.53 – No position justified from the risk/reward point of view (Fig. 1);
- Natural Gas [NGV21] Long around $4.573-4.701 with stop below $4.215 and target at $5.266 (Fig. 2).
Oil Market Analysis
Crude oil prices advanced today, approaching last week's closing levels, boosted by a reduction in US crude inventories. The American Petroleum Institute (API) said on Tuesday that US reserves had fallen by more than 6 million barrels last week. According to Bloomberg, the figures for today’s released report by the Energy Information Administration (EIA) are also expected to drop but to a lesser extent, by 2.45 million barrels. Thus, this would be the seventh consecutive weekly drop in inventories, with such disruptions due to the hurricane season still being felt.
Below are the next potential support levels on both Crude Oil and Natural Gas futures.
Figure 1 – WTI Crude Oil (CLX21) Futures (November contract, daily chart)
Figure 2 – Henry Hub Natural Gas (NGV21) Futures (October contract, daily chart)
In brief, both crude oil and natural gas remain in bullish territory so far, with gas dipping very close to our forecasted support level.
As always, we’ll keep you, our subscribers well informed.
Please note that due to market volatility, some of the key levels may have already been reached and scenarios played out.
Trading position
- Crude Oil [CLX21] Next support around $69.00-69.36 – Lower support around $67.18-67.53 – No position justified from the risk/reward point of view (Fig. 1);
- Natural Gas [NGV21] Long around $4.573-4.701 with stop below $4.215 and target at $5.266 (Fig. 2).
Thank you.
Sebastien Bischeri
Oil & Gas Trading Strategist
