October Crude Oil spiked higher to 46.53 during the Labor Day holiday as Russia and Saudi Arabia announced they were going to meet and discuss stabilizing the crude oil market. The meeting was a dud and the announcement of the results caused Crude Oil futures to fall back and trade below the 44 handle on Tuesday, September 6, 2016.
Crude Oil found support at 43.84 as once again the Iranians took it upon themselves to harass the US Navy; sending fast attack boats directly in the way of a US patrol ship. The ship had to change direction to avoid the Iranian boat. Continued aggression by the Iranians could lead to an incident between the two countries.
The aggressive Iranian maneuvers plus weakness in the US dollar stabilized the market. Weakness in the ISM Non-Manufacturing index sent Gold and Interest Rate futures soaring as traders concluded the disappointing report would prevent the Fed from raising rates in September. This brought down the dollar and stopped the decline in Crude Oil prices.
Crude wasn’t able to regain the 45 handle however, trading to 44.99 and then sleepwalking in a tight range (44.95 to 44.77) for the remainder of the session. It ended the session at 44.88. Crude Oil has resistance at 45.10, (50 DMA), 45.69 (21 DMA), 46.04 (100 DMA) and 46.53. Support is at 43.58 (TL), 43.00 (September 1st low), 42.08 (August 4 high), 41.82 (TL).
- High: 46.53
- Low: 43.84
- Last:44.88
Daily Pivot Points for 9/7/16
- R2: 47.77
- R1: 46.33
- PIVOT: 45.08
- S1: 43.64
- S2: 42.39