WTI Crude Oil Trading

WTI REMAINS UNDER PRESSURE NEAR THE $56.00 MARK/BBL
18 July 2019, 16:51

 

1. WTI trades directionless near the $56.00 handle.
2. The barrel of WTI trades in the area of 2-week lows.
3. EIA reported a 3.1M barrel draw last week.

Crude oil prices are looking for direction so far this week, with the barrel of West Texas Intermediate hovering around the $56.00 mark, challenging at the same time 3-week lows.

WTI fades the initial uptick above $57.00
Prices of the American benchmark for the sweet light crude oil attempted a move beyond the $57.00 mark earlier in the day following news that Iran has seized a foreign oil tanker in the Persian Gulf.
In the meantime, rumours that Iran and the US could go back to the negotiations table have removed some tension in the Middle East and put crude oil prices under some downside pressure as of late.
Also weighing on crude prices, the EIA reported on Wednesday a 3.1M barrel draw during last week, coming in short of expectations despite it was the fifth consecutive drop in US supplies.
Looking ahead, driller Baker Hughes will publish its weekly report on US drilling activity on Friday.

What to look for around WTI
The weekly sell-off in crude oil prices showed some decent contention emerged around the $56.00 mark per barrel. Diminishing US-Iran tensions have been collaborating with shrinking prices, although there is still no move from any of the countries to start talks. On the positive side for oil prices, the recent extension of the OPEC+ deal to curb output until the end of Q1 2020 should provide some support in case sellers regain the upper hand along with tight US oil markets and the so-called ‘Saudi put’.

WTI significant levels
At the moment the barrel of WTI is gaining 0.18% at $56.69 and a surpass of $57.45 (200-day SMA) would aim for $59.16 (100-day SMA) and then $60.86 (monthly high Jul.15). On the downside, immediate contention emerges at $56.23 (low Jul.17) seconded by $55.91 (monthly low Jul.3) and finally $50.54 (monthly low Jun.5).

Opened a small NQ short at 7891. Don't like the choppy market, but placed the short above first upper band (UB!).
EDIT
Could have taken a modest gain, but let it run so I could be stopped out for a modest loss. I really don't like choppy markets.

In the bigger picture, it seems it's making an expanding triangle:
(very early guess)

Could be a nice opportunity

pivot + ema200 rejection on H1

WTI reached support (55,9x area) at weekly chart + S100 pivot point

I have feeling aariapoors target of 55 will come about soon

I'm out for now

Yes gradually we should look for direction change but I don't think it happens in these 2 days, next week maybe

broke support so 55 might be there sooner than we think

next target 54,50 - 54,70 area? ( fib s138 fib 172.2)

55.27 possible support

Yeah I put my TP on 54.60 but thinking to close it tonight, not sure

I'm long 55.44 stop at b/e

That's it for me good luck all

You had a hell of a ride so far. Still think it's possible just set a sl @ 56 or lower and let it run.

Why? don't rush to go long yet

The Frist one touched TP +450 pips

The second one came very close to TP but still didn't touch

I took another sell but closed with $1 because of trailing stop

nice trading champ!

It's getting choppy like hell. Would set a tight SL on your open trades smells like consolidation to me.

Yeah, they're fightin' to start the reversal, watch it like a hawk to find a buy setup (next week)
Please note that this move actually was a pullback and the direction is UP; the next target would be around 63.00 and then 66.45
We have to catch that and stay in it all the way UP

THE USS BOXER SHOOTS DOWN IRANIAN DRONE, NOW CONFIRMED BY THE PENTAGON
18 July 2019, 22:45

President Trump announced on Thursday that the amphibious assault ship, the USS Boxer, shot down an Iranian drone in the Strait of Hormuz in a defensive action.
The Boxer took defensive action which had enclosed in on the ship, by approx 1000 yards, and was destroyed as it was threatening the safety of the ship and ship's crew. Trump said this was the latest of many hostile moves by Iran.

1. Trump has called on "other nations" to protect their ships as they go through the Strait.
2. The Pentagon has since confirmed the incident.

Oil had moved off session lows on the news, with WTI trading at 55.71 after the headlines, up from the $54.71 lows.
The comments come as tensions between Washington and Tehran remain high over a spate of attacks on cargo ships, the downing of an American drone and the British seizure of a tanker carrying Iranian oil. Earlier in the day, the U.S. condemned Iranian naval activity in the Persian Gulf and demanded the Islamic Republic release a small tanker and its crew that its forces seized this week. A State Department official who asked not to be identified discussing the issue cited the Islamic Revolutionary Guard Corps’ “continued harassment” of vessels in and around the Strait,
- Bloomberg