Crude Oil futures climbed in back to back trading sessions as tensions over a potential trade war temporarily ease while geopolitical concerns surrounding Syria take the reins.
The suspected chemical weapon attack in Syria raised concerns of potential military action in the region triggering a disruption in crude oil production and distribution.
As of mid-Tuesday, the CL has surged more than 5% over the last two days. The bullish trend formed in late June of 2017 is backed by OPEC’s commitment to curtail production levels in effort of bolstering price. However, the strong output from U.S. shale has the potential to undermine OPEC’s efforts.
Tomorrow’s weekly report from the U.S. Energy Information Administration should shed light on current supply levels with the potential to further strengthen crude oil’s uptrend.
The above chart created with the award winning NinjaTrader platform features the May Crude Oil Futures contract via 4 hour candlesticks. Currently trading around the 76.4% Fibonacci retracement, the commodity is close to erasing 100% of its losses incurred at the beginning of the month.
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