Crude Oil Speculators Need to Be Ready

Crude Oil will be in focus for speculators today and tomorrow as reports begin to emerge about the potential damage to supply and infrastructure for the commodity. Traders may look for upside and attempt speculative buying positions in the short-term.

A Hurricane of Speculation on the Way

U.S. Crude Oil has begun the day’s trading below the 48.00 U.S Dollar a barrel level.

The commodity has not seen a rapid rise in price since the onset of Hurricane Harvey or what has turned into a large tropical storm, which is in the process of dumping record amounts of rain on Texas.

Support for U.S Crude Oil may be near 47.00 U.S Dollars a barrel. But interestingly, it is the upside potential of Crude Oil in the short-term which will likely attract speculators the next few days.

Worries about Supply & Infrastructure

While Crude Oil has not reacted in a volatile manner yet to the news from Texas, reports about massive flooding is starting to be seen and heard.

Texas acts as major supply and infrastructure area for the U.S Crude Oil market. If refineries in Texas are not able to function at full capacity in the coming days and weeks, due to damage because of flooding it is likely to influence the price of the commodity.

Short-Term Upside Potential

The questions speculators are likely asking themselves are what are the downside risks of U.S Crude Oil in the short-term compared to its upside potential if reports about damaged infrastructure emerge?

It is possible trading sentiment could get nervous regarding supply and refinery capacity numbers in the coming days, which could spark a rise in the value of U.S Crude Oil.

In the short term, we believe Crude Oil may be positive. Mid-term and Long-term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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