Monday was rollover day in Crude Oil. The September contract is now the front contract as its volume is now greater than the August contract. The August contract expires on July 20 so volume will continue to dwindle.
September Crude Oil opened up Sunday night at the session highs (46.84) and traded down to the lows (45.54) during the morning part of the US session and then grinded higher and settled at 45.94. Crude Oil didn’t go anywhere after settlement and ended the day at 45.91.
Crude Oil is in a trading range and a breakout above resistance at 46.93 could send price to resistance up at 48.68; A breakdown of support at 45.64 could lead to a breakdown to support at 43.92.
Traders are looking once again at supply buildups with gasoline stocks remaining high as seasonal demand hasn’t been strong enough to eliminate the glut. The coup attempt in Turkey didn’t cause any major disruptions in crude oil shipments and the Turkish government appears to be in firm control of the country so that seems to have calmed down, but a strike by Royal Dutch Shell (NYSE:RDSa) oil and gas maintenance workers could cause some problems. A 24 hour strike is scheduled for July 26th and this will disrupt supply.
- High 46.84
- Low 45.54
- Last 45.91
Daily Pivot Points for 7/19/16
- R2 47.40
- R1 46.65
- PIVOT 46.10
- S1 45.35
- S2 44.80