Crude Rebounds on Iran Tensions—All Eyes on OPEC

Energy Update

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WTI Crude Oil Futures (June Future)

Yesterday’s Settlement: 59.24, up +1.03 [+1.77%] 

WTI Crude Oil futures ended the day higher after falling by as much as -1.82 [-3.12%] through the overnight session.

The +2.85 rally into settlement was fueled by a breakdown in US-Iran negotiations, which ended with President Trump threatening increased sanctions alongside a general risk-on trade in the macro environment.

The President announced that buyers of Iranian crude would face secondary sanctions after the nuclear talks broke down. 

Today, Crude Oil is down -0.30 [-0.51%] to 58.94 

Futures have bounced from overnight lows on comments out of Iran, who said today that US officials are clearly not serious with these nuclear talks. Full Iranian sanctions are likely. 

With Monday being the OPEC meeting, position squaring is likely throughout the day.

Technical Analysis:

The impressive comeback in crude yesterday led to a settlement above the key support zone of 58.29-59.00**. The overnight sell-off has retested this support pocket and a morning rally is likely with the Iran news.

We again advise caution if taking positions over the weekend and into the OPEC meeting Monday. Volatility can be violent into and after these OPEC meetings that are consequential.

For intraday trading our pivot and point of balance is…

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Futures trading involves a substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians, or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy, and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third-party application. Blue Line Futures employees use only firm-authorized email addresses and phone numbers. If you are contacted by any person and want to confirm your identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500

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