WTI Light Sweet Oil Futures (CL) were up more than 2% Monday morning as investors commenced the trading week. A combination of both bullish and bearish factors has ramped up volatility in CL trading over recent weeks.
- Geopolitical Hostility in the Middle East: Last week, Saudi Arabia announced the halting of oil shipments through the Bab al-Mendeb strait in the Red Sea which is a substantial tanker route.
- Risk to Supply: US sanctions against Iran have also contributed to the bullish sentiment on oil.
- Rising Global Supply: Russia signaled last week that it may increase its crude oil output more than expected.
- Increased Output: In June, OPEC agreed to start increasing crude production by as much as 1 million barrels a day following a year of restrictions on production.
The chart below shows CL’s price action over the past year. A Simple Moving Average (SMA), Exponential Moving Average (EMA) and Volume Oscillator indicators have been added to emphasize the fluctuations in price.
Download NinjaTrader’s award winning trading software to start charting and SIM trading the WTI Crude Oil (CL) contract for FREE!