WTI Crude Oil Futures (January)
Friday’s Settlement: 67.20, down -1.10 [-1.61%], down -0.80 [-1.18%] for the week.
Last week’s slide in crude oil came despite OPEC+’s decision to delay output hikes and rising geopolitical risks within the Middle East. Bullish fundamental catalysts were overpowered by sellers as a weak outlook for the Chinese economy hung over markets.
Over the weekend, Syria’s rebel army took the capital of Damascus in a lightning offensive. The Assad regime, which has ruled through brutality and fear for over 50 years fell seemingly overnight. While Syria has been engulfed in a civil war for over a decade, the downfall is being called one of the most shocking in the history of the Middle East. Assad was a close ally of Iran and Russia, and his family has been granted Asylum in Moscow. What comes next in Syria is crucial as multiple groups (including ISIS and former Al-Qaeda associates) vie for power. Immediately following Assad’s ousting, the U.S. launched strikes on over 75 ISIS targets inside Syria. Israel took advantage of the situation to move ground troops into the demilitarized buffer soon alongside their border while also striking the Assad regime’s chemical weapons stockpile. De-escalation within the Middle East does not appear to be happening as expected.
Chinese leaders announced bolder stimulus last night at their Politburo meeting alongside the adoption of a “moderately loose” monetary policy. The bolder stance towards stimulus by Chinese leadership is helping to boost risk assets globally.
Today, WTI Crude Oil futures are higher by +0.88 [+1.31%] to 68.11 on the Syrian situation and friendly stimulus comments out of China. The macro backdrop has interest rates higher, metals higher with a weaker Yen, and a flat Euro.
On Friday, our rare major four-star support level of 66.92 held firm. Today, price has regained the 67.87-68.05 mark which stands as our Pivot and point of balance; considering geopolitics and China tailwinds, it is crucial for price action to solidify above here. In doing so, we see tailwinds to first key resistance at…
Want to stay informed about energy markets?
Subscribe to our daily Energy Update for essential insights into Crude Oil and more. Get expert technical analysis, proprietary trading levels, and actionable market biases delivered straight to your inbox. Sign up now for free futures market research from Blue Line Futures!
Sign Up for Free Futures Market Research – Blue Line Futures