Up, Up and Further Up?

By: Peter Haralambakis / May 17, 2018

When the American popular music vocal group The 5th Dimension released the song, “Up, Up and Away” in 1967, domestic crude oil prices were at $3.12 a barrel, with an inflation adjusted price of $22.90 a barrel, and I’m quite positive they weren’t thinking about what impact $80 a barrel, or even $100 a barrel would have on the global economy. As of 12:30pm WTI crude for June delivery is up $0.18 at $71.67.  With an intraday high of $72.30 for WTI and an intraday high of $80.50 for Brent crude, market participants are anxiously watching WTI’s major resistance level at $72.23 and Brent’s psychological level of $80 a barrel for a hint as to where prices may head next.

CL Continuation-28

A WTI settlement above the long term trend channel-top of $72.23 should find the next major resistance level of $74.43 within the next 3-5 trading days.  The nearest major support level is currently almost $2 away at $70.29.  If, and that is a strong if, WTI settles under that level, we should see the upper $60’s within the next couple of weeks.  However, with Iran sanctions fresh on everyone’s minds, global supply heading below the 5 year avg in the near future, and inventories in gasoline, distillates and crude down 4%, down 22%, and down 17% vs last year respectively, it appears for now the trend is our friend and that trend is up, up and away.


Categories: Industry Update


Peter Haralambakis

Written by

Peter Haralambakis

Peter Haralambakis is a Supply and Trading Business Development Manager at Guttman Energy with over 13 years of experience in commodities trading, analysis, and risk management in products ranging from Corn and Soybeans to Crude Oil Futures and Options to Financial and Physical Biofuels to Natural Gas and Natural Gas Liquids.


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