U.S. West Texas Intermediate and internationally-flavored Brent crude oil futures are trading firm early Monday on expectations the OPEC-led program to
U.S. West Texas Intermediate and internationally-flavored Brent crude oil futures are trading firm early Monday on expectations the OPEC-led program to cut output due to expire next March would be extended.
At 0600 GMT, December WTI crude oil futures are trading at $53.90, unchanged. January Brent crude oil is trading 60.11, down $0.02 or -0.03%. It opened over the psychological $60.00 level.
Traders are saying strong compliance with the program to trim production already in place and last week’s positive comments from the Saudi Arabian Crown Price that suggested the production cut agreement should be extended are supporting the recent gains.
In other news, hedge funds and other money managers raised their bullish wagers on U.S. crude oil futures and options in the week to October 24, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
Additionally, speculators raised their combined futures and options positions in New York and London by 15,041 contracts to 280,634 during the same period.
Prices are likely to continue to be underpinned today by speculators although hedging pressure could put a lid on gains and may actually lead to a profit-taking and a weaker close.
Investor sentiment is likely to remain strong based on the hedge fund activity so any weakness is likely to be short-lived because buyers will likely be waiting in value areas to reassert their bullishness.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.