Tactics and Analysis, July 6, 2017 – Crude Oil: A Speculator’s Market

Crude Oil Inventories statistics will come from the States later today. U.S Crude Oil sold off on Wednesday under a haze of speculative pressure. Traders may continue to test short term momentum downwards and risk management is needed because Crude Oil will remain a fast market.

Opportunity for Risk Takers

The U.S Crude Oil price continues to offer speculators plenty of opportunity. Yesterday’s abrupt decline in the price of the commodity should not have been a surprise to anyone.

Traders continue to find fast market conditions in U.S Crude Oil and the 45.00 U.S Dollars a barrel level has again come into focus. The commodity had been able to gain moderately the past week and a half, but yesterday’s trading proved suspicion remains high among market participants.

A Crude Oil Inventories report will come from the States today at 15:00 GMT. However, the outcome of the supply data from the U.S may only have a limited impact. The reason for this is because investors already know a glut of Crude Oil remains abundant.

Range Tests Will Continue in Crude Oil

U.S Crude Oil has performed a consistent test of its range in the mid-term. Traders who have been patient have been able to take advantage of the relatively consolidated price movement. Support and resistance levels will likely continue to be seen within the commodity market.

However, June’s sell off in Crude Oil should also serve as a warning. Supply issues in the energy sector continue to indicate production remains high and exploration for the commodity is increasing. U.S policy regarding Crude Oil under the Trump administration has encouraged producers via a less restrictive regulatory environment.

A Taste for Speculative Action

U.S Crude Oil may continue to range trade between 43.00 and 47.00 U.S Dollars a barrel in the near term.

The recent climb in price set off an alarm among speculators yesterday who sold Crude Oil off in a strong fashion. Some buying has re-emerged this morning for the commodity, but it has not put in a convincing gain.

Crude OI will certainly offer action today and tomorrow. Fast market conditions dictate that traders must use risk management.  And traders may be tempted to test Crude Oil’s downturn if they have a real taste for speculation.

In the short term, we believe U.S Crude Oil may be negative. In the mid-term and long-term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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