Crude oil futures have given back most of yesterday’s gains, but losses may be limited due to disruptions in supply from Brazil and Libya. Crude oil futures are down $1.62 at this time currently trading at $46.28 per barrel at the New York Mercantile Exchange.
There’s a strike happening with Brazil’s state-run oil producer causing a reportedly 25% disruption for the world’s ninth-biggest oil producing nation. In Libya, one of their oil export terminals is closing and both of these situations are helping to support crude oil prices today.
Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, shared his fundamental view of the crude oil futures market by stating, “Crude oil (futures) traders are most likely either taking temporary profits, or establishing new short positions after a five dollar rally.” Brady added, “With a strong US Dollar still prominent and persistent fragile economic data coming out of China, its hard to imagine crude oil (futures) prices rally much from here.”
Crude oil futures trend is down, however range-bound for the last two months. Crude oil futures had found a recent low near $43 early last week from their recent $51 high early last month so these are the parameters for consumers and traders to watch.
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.