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Crude Oil Futures Up More Than 2% on Supply Concerns

CL Crude Oil Trading Chart NinjaTrader Price

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.

Bullish Factors

  • 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.

Bearish Factors

  • 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.

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