Crude Oil Radar

2025-09-18 22:09

Table of Contents

Brian's Thoughts

Published: 09/18/2025 Focus: Crude Oil
Crude broke above the 63.80 with some more news about Russian Supply risks - from a technical move - breaking above 63.80 is very pivotal - however it is still only “marginally” up. Watching for a re-test of 63.80 - but if we get over 66.84 - we are likely going to run to the $70s and beyond. Fundamentals are ironically looking bearish so I expect this bullish move to be a temporary one - and we will hit the $50s before launching into a long and strong bull move!

Today's Update

Updated: 2025-09-18 22:06:32 Length: 480 chars
Crude oil prices recently broke above $63.80, a pivotal technical level, amid concerns over Russian supply risks. However, the bullish sentiment appears temporary as bearish fundamentals loom, with expectations of a dip into the $50s before a potential long-term bull run. Current market dynamics show mixed signals, with dollar strength and ample supplies weighing on prices. Traders should watch for a re-test of $63.80 and a breakout above $66.84 for further direction, whil...

Market Summary

Technical Outlook

Neutral
Score: -1/5
Short: BUY | Medium: BUY | Long: SELL

International Prices

Brent: $67.95 $0.52
WTI: $64.05 $0.47
Spread: $3.9 (Brent premium of $3.90)

Key Fundamentals

Crude Stocks: N/A (0)
Net Imports: N/A (0)

News Sentiment

BEARISH

Spec Positioning

Net Position: 10,002
Weekly Change: 17,321

Technical Analysis

Overall Technical Score (-5 to +5): -1 (Neutral)
Current Price: $63.62
Signal: Neutral

Moving Averages (9/20)

BEARISH

MA(9): $63.23

MA(20): $63.6

Current Price is 63.62, 9 day MA 63.23, 20 day MA 63.6

MACD (12, 26, 9)

BULLISH

MACD: -0.2988

Signal: -0.4692

Days since crossover: 4

MACD crossed the line 4 days ago and is in a bullish setup

RSI (14)

NEUTRAL

Value: 48.96

Category: NEUTRAL

RSI is 48.96 (note 70% is overbought and 30% is oversold)

Volume (vs 20d Avg)

LOWER

Current: 1,634

Avg (20d): 216,729

Ratio: 0.01

Volume is lower versus 20 day average

Stochastic (14, 3)

BEARISH CROSS

%K: 47.38

%D: 57.06

Stochastic %K: 47.38, %D: 57.06. Signal: bearish cross

ADX (14)

NO TREND

ADX: 9.37

+DI: 16.17

-DI: 16.32

ADX: 9.37 (+DI: 16.17, -DI: 16.32). Trend: no trend

Williams %R (14)

NEUTRAL

Value: -52.62

Williams %R: -52.62 (neutral zone)

Bollinger Bands (20, 2)

ABOVE MIDDLE

Upper: 65.41

Middle: 63.6

Lower: 61.79

Price vs BBands (20, 2): above middle. Upper: 65.41, Middle: 63.6, Lower: 61.79

Fundamental Analysis

Category Current Last Week Last Year 3 Yr Avg
Crude Production (Thousand Barrels a Day) 13482.0 13495.0 13300.0 12733.33
Crude Imports (Thousand Barrels a Day) 5692.0 6271.0 6867.0 6595.33
Crude Exports (Thousand Barrels a Day) 5277.0 2745.0 3305.0 4398.67
Refinery Inputs (Thousand Barrels a Day) 16424.0 16818.0 16759.0 16378.67
Net Imports (Thousand Barrels a Day) 415.0 3526.0 3562.0 2196.67
Commercial Crude Stocks (Thousand Barrels) 415361.0 424646.0 419143.0 422247.67
Crude & Products Total Stocks (Thousand Barrels) 1688149.0 1686474.0 1659136.0 1649988.67
Gasoline Stocks (Thousand Barrels) 217650.0 219997.0 221552.0 218569.0
Distillate Stocks (Thousand Barrels) 124684.0 120638.0 125023.0 120688.0

International Price Analysis

International Price Summary

Brent crude (NOV 25) settled at $67.95, change $-0.52. WTI crude (OCT 25) settled at $64.05, change $-0.47. The Brent-WTI spread is currently $3.9 (Brent premium of $3.90). The Brent-WTI spread reflects differences in global vs. U.S. supply/demand dynamics, geopolitics, and transportation costs.

Brent Crude

$67.95
0.52
(NOV 25)

WTI Crude

$64.05
0.47
(OCT 25)

Brent-WTI Spread

$3.9
Brent premium of $3.90

OPEC Analysis

OPEC Market Analysis

Executive Summary:

The current OPEC market situation reflects a decline in crude oil prices alongside steady global economic growth. Despite a slight decrease in production from DoC countries, demand for oil is projected to increase, indicating a potential tightening of the market in the near future.

Key Market Metrics:

Category Country/Region Production/Demand (mb/d)
World Production OPEC
World Production Non-OPEC
World Demand OECD
World Demand Non-OECD
Non-DoC Production USA
DoC Production Saudi Arabia

Supply-Demand Balance Analysis:

The analysis of production and demand figures indicates a potential surplus in the market, particularly with non-DoC production outpacing demand growth. However, the upward revision of demand for DoC crude suggests a tightening supply situation that could lead to price increases if production does not keep pace.

Production Landscape:

The production landscape shows significant contributions from major producers such as Saudi Arabia and the USA. Recent data indicates a decrease in production from DoC countries, which may impact overall supply levels. The focus remains on the performance of key players and their ability to adjust output in response to market conditions.

Demand Patterns:

Demand analysis reveals growth primarily in non-OECD regions, with countries like India and China leading the way. Challenges remain in OECD regions, where demand growth is sluggish. The overall demand trajectory suggests a robust increase in consumption, particularly in emerging markets.

Non-DoC vs DoC Analysis:

The comparison between Non-DoC and DoC production levels highlights a significant disparity, with Non-DoC countries expected to contribute more to global supply. This dynamic raises questions about OPEC's influence on market prices and the sustainability of their production agreements.

OPEC's Strategic Position:

OPEC's current market position is characterized by cautious optimism, as the organization navigates declining prices while managing production levels. The likely policy direction will focus on stabilizing prices through coordinated production adjustments among member countries.

Forward-Looking Indicators:

Looking ahead, indicators suggest that if demand continues to rise as projected, OPEC may need to reconsider its production strategies to avoid a supply crunch. Market participants should monitor geopolitical developments and economic trends that could influence oil prices in the coming months.

Key Insights and Recommendations:

  • Monitor the balance between Non-DoC and DoC production to assess OPEC's market influence.
  • Prepare for potential price increases if demand growth outpaces production adjustments.
  • Focus on emerging markets for demand growth opportunities, particularly in Asia.
  • Stay informed on geopolitical developments that could impact supply chains and pricing.
  • Consider strategic adjustments in response to changing refinery margins and product demand.
Note: The placeholders for data in the table should be filled with the actual numerical values from the provided data once available.

CFTC CoT Analysis

Sentiment: Bullish but Weakening
Positioning: Normal Range
Report Date: 2025-09-09

Managed Money

10,002
Change: -17,321
0.5% of OI

Producer/Merchant

301,400
Change: +1,664
15.4% of OI

Swap Dealers

-403,555
Change: +17,576
-20.6% of OI

Open Interest

1,957,115
Change: -30,746

Summary Analysis:

CFTC Commitment of Traders Report (Disaggregated) as of 2025-09-09

Crude Oil Positioning (WTI-PHYSICAL - NYMEX):

Open Interest: 1,957,115 contracts (-30,746)

Managed Money Net Position: 10,002 contracts (0.5% of OI)

Weekly Change in Managed Money Net: -17,321 contracts

Producer/Merchant Net Position: 301,400 contracts

Swap Dealer Net Position: -403,555 contracts

Market Sentiment (based on Managed Money): Bullish but Weakening

Positioning Analysis (Managed Money): Normal Range

Key Takeaways:

- Managed Money traders are large speculators, often driving price trends in Crude Oil.

- Producer/Merchant positions primarily reflect hedging activity.

- Swap Dealers act as intermediaries.

- Extreme positioning by Managed Money can indicate potential market reversals.

- CFTC data reports positions as of the report date, usually released each Friday.

About Disaggregated CoT Reports:

The Disaggregated CoT report provides a more detailed breakdown of futures market open interest.

It categorizes traders into: Producer/Merchant/Processor/User (Commercials), Swap Dealers, Managed Money (Speculators), and Other Reportables.

News Analysis

Market Sentiment Overview

BEARISH
Average Polarity: -0.6
Confidence: 1.0
Articles Analyzed: 64
Last Updated: 2025-09-18 22:09:06

Commodity Sentiment

CRUDE_OIL

-0.6

Top News Topics

Economic Analysis

Economic Sentiment Summary

NEGATIVE - Economic indicators showing headwinds
Dollar Impact: Strong USD may pressure commodity prices
Industrial Demand: Weaker industrial demand signals
Interest Rate Impact: Rising rates may impact energy demand
Risk Sentiment: Low market volatility/risk appetite

Economic Indicators

USD_INDEX

97.44
Daily: 0.57 (0.59%)
Weekly: -0.11 (-0.11%)

US_10Y

4.1
Daily: 0.03 (0.69%)
Weekly: 0.04 (1.06%)

SP500

6631.96
Daily: 31.61 (0.48%)
Weekly: 47.67 (0.72%)

VIX

15.7
Daily: -0.02 (-0.13%)
Weekly: 0.94 (6.37%)

GOLD

3672.2
Daily: -9.6 (-0.26%)
Weekly: 22.8 (0.62%)

COPPER

4.6
Daily: 0.03 (0.68%)
Weekly: 0.01 (0.29%)

Fibonacci Analysis

Current Price: $63.62
Closest Support: $63.59 0.05% below current price
Closest Resistance: $64.91 2.03% above current price

Fibonacci Retracement Levels

0.0 $61.45
0.236 $63.59 Support
0.382 $64.91 Resistance
0.5 $65.98
0.618 $67.05
0.786 $68.57
1.0 $70.51

Fibonacci Extension Levels

1.272 $72.97
1.618 $76.11
2.0 $79.57
2.618 $85.17

ML Price Prediction

Current Price: $63.57
Forecast Generated: 2025-09-18 22:09:08
Next Trading Day: DOWN 0.1%
Date Prediction Lower Bound Upper Bound
2025-09-19 $63.51 $61.66 $65.36
2025-09-20 $63.46 $61.61 $65.31
2025-09-21 $63.42 $61.57 $65.27
2025-09-22 $63.46 $61.61 $65.31
2025-09-23 $63.49 $61.64 $65.34

ML Insights

  • Forecast generated using ARIMA(5, 1, 0).
  • The model predicts a price decrease of ~0.10% for the next trading day (2025-09-19), reaching $63.51.
  • The 5-day forecast suggests relatively stable prices between 2025-09-19 and 2025-09-23.
  • The average confidence interval width is ~5.8% of the predicted price, indicating model uncertainty.
  • SIGNAL: Bearish signal, moderate uncertainty.

AI Analysis

💹

For Energy Traders:

The recent decline in crude oil prices reflects a bearish sentiment in the market, with the OPEC Reference Basket dropping to an average of $68.98/b. The Brent-WTI spread currently at $3.90 suggests ongoing supply/demand dynamics favoring Brent, but narrowing spreads indicate a potential convergence in market conditions.

Traders should consider the technical support levels around $62.00 for WTI and $66.00 for Brent, while potential resistance can be observed near $70.00. The market remains volatile with a bearish sentiment score of -0.600, indicating caution in trading strategies.

For Producers (Oil & Gas Companies):

The current market conditions necessitate a review of production planning and hedging strategies. With crude oil inventories in the OECD showing a slight increase, producers should be prepared for potential price fluctuations driven by inventory levels and demand shifts.

The balance of supply and demand indicates a slight upward revision for DoC crude demand in 2025, reaching 42.6 mb/d, suggesting stable demand for producers. However, the overall market sentiment remains cautious, influenced by geopolitical concerns and economic forecasts.

🏭

For Consumers (Industrial/Refineries/Transportation):

Consumers should brace for potential input cost fluctuations as crude prices have recently declined. The $64.05 for WTI and $67.95 for Brent may affect procurement strategies. The supply reliability risks are heightened by geopolitical tensions, particularly surrounding Russian supply dynamics.

With product imports declining and refinery margins under pressure, consumers in the refining sector may need to adjust their hedging strategies to mitigate risks associated with fluctuating product availability and pricing.

📊

For Commodity Professionals (Analysts, Consultants):

The Crude Oil market is currently facing a bearish sentiment with a sentiment score of -0.600. Key driving factors include a slight downturn in global economic growth forecasts and a decline in demand from OECD countries.

The fundamental balance suggests stable demand growth in non-OECD regions, but the overall outlook remains cautious. Analysts should monitor positioning data, as managed money positions are weakening, indicating potential market reversals that could impact future price movements.

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Always conduct your own research and consult with a financial advisor before making any investment decisions.