The Wiseguy Report - WTI Crude Oil - 9/22/23
NEAR TERM:: NEUTRAL
VOLUME STRUCTURE -
CLX2023
So far, for the month of September, 70% of the trading volume for the November contract has occurred between $89 & $91.75, with the highest volume around $91.
PRICE ACTION
WTI strongly rejected prices above $92 & failed to make a subsequent new high.
A FEW FUNDAMENTAL FACTORS
- Seasonal Demand Destruction (winter)
- China economy showing weakness
- Continued USD strength & therefore expensive Petrodollar
- FOMC is still slightly hawkish on interest rates, which supports a strong USD for now.
- OPEC+ Meeting :: October 5
VOLUME STRUCTURE -
CLX2023
So far, for the month of September, 70% of the trading volume for the November contract has occurred between $89 & $91.75, with the highest volume around $91.
PRICE ACTION
WTI strongly rejected prices above $92 & failed to make a subsequent new high.
A FEW FUNDAMENTAL FACTORS
- Seasonal Demand Destruction (winter)
- China economy showing weakness
- Continued USD strength & therefore expensive Petrodollar
- FOMC is still slightly hawkish on interest rates, which supports a strong USD for now.
- OPEC+ Meeting :: October 5
I'm watching that failure swing closely.
Still NEUTRAL right now for the near term.