Crude Oil Market Analysis Report

2025-05-07 23:47

Table of Contents

Market Summary

Technical Outlook

Moderately Bearish
Score: -3/5
Short: SELL | Medium: SELL | Long: SELL

International Prices

Brent: $62.15 $1.92
WTI: $59.09 $1.96
Spread: $3.06 (Brent premium of $3.06)

Key Fundamentals

Crude Stocks: 438,376 (0)
Net Imports: 2,050 (0)

News Sentiment

NEUTRAL

Spec Positioning

Net Position: 606,308
Weekly Change: 4,897

Technical Analysis

Overall Technical Score (-5 to +5): -3 (Moderately Bearish)
Current Price: $58.54
Signal: Moderately Bearish

Moving Averages (9/20)

BEARISH

MA(9): $59.55

MA(20): $61.12

Current Price is 58.54, 9 day MA 59.55, 20 day MA 61.12

MACD (12, 26, 9)

BEARISH

MACD: -2.0157

Signal: -1.8392

Days since crossover: 6

MACD crossed the line 6 days ago and is in a bearish setup

RSI (14)

NEUTRAL

Value: 39.15

Category: NEUTRAL

RSI is 39.15 (note 70% is overbought and 30% is oversold)

Volume (vs 20d Avg)

LOWER

Current: 11,135

Avg (20d): 286,766

Ratio: 0.04

Volume is lower versus 20 day average

Stochastic (14, 3)

BULLISH CROSS

%K: 33.1

%D: 30.17

Stochastic %K: 33.1, %D: 30.17. Signal: bullish cross

ADX (14)

STRONG DOWNTREND

ADX: 35.58

+DI: 14.81

-DI: 30.06

ADX: 35.58 (+DI: 14.81, -DI: 30.06). Trend: strong downtrend

Williams %R (14)

NEUTRAL

Value: -66.9

Williams %R: -66.9 (neutral zone)

Bollinger Bands (20, 2)

BELOW MIDDLE

Upper: 65.3

Middle: 61.12

Lower: 56.94

Price vs BBands (20, 2): below middle. Upper: 65.3, Middle: 61.12, Lower: 56.94

Fundamental Analysis

Category Current (BCFD) Last Week Last Year 3 Yr Avg
Crude Production 13367.0 13465.0 13100.0 12400.0
Crude Imports 6056.0 5498.0 6772.0 6263.67
Crude Exports 4006.0 4121.0 3918.0 3407.67
Refinery Inputs 16071.0 16078.0 15641.0 15796.33
Net Imports 2050.0 1377.0 2854.0 2856.0
Commercial Crude Stocks 438376.0 440408.0 460890.0 448775.33
Crude & Products Total Stocks 1612398.0 1610654.0 1607883.0 1634257.0
Gasoline Stocks 225728.0 225540.0 227087.0 224227.0
Distillate Stocks 106708.0 107815.0 115850.0 108864.0

International Price Analysis

International Price Summary

Brent crude (JUL 25) settled at $62.15, change $+1.92. WTI crude (JUN 25) settled at $59.09, change $+1.96. The Brent-WTI spread is currently $3.06 (Brent premium of $3.06). The Brent-WTI spread reflects differences in global vs. U.S. supply/demand dynamics, geopolitics, and transportation costs.

Brent Crude

$62.15
1.92
(JUL 25)

WTI Crude

$59.09
1.96
(JUN 25)

Brent-WTI Spread

$3.06
Brent premium of $3.06

OPEC Analysis

BEARISH
66.67% confidence
Demand
Production
Stocks
Category Current Value Mean Change Volatility Range
World Demand
Americas 12 12 0 12 to 12
Europe 6 6 0 6 to 7
Asia Pacific 3 3 0 3 to 3
Middle East 4 4 0 4 to 4
Africa 2 2 0 2 to 2
Production
(b) Total Non-DoC liquids production and DoC NGLs 63 73 25 57 to 126
DoC crude oil production 0 15 21 0 to 42
Non-DoC liquids production 192 209 87 113 to 379
Non-OPEC DoC crude production 0 5 7 0 to 15
OPEC crude oil production (secondary sources) 0 9 13 0 to 27
Total Non-DoC liquids production 63 73 25 57 to 126
Total Non-DoC production 55 63 22 49 to 109
Total liquids production 0 37 51 0 to 103
Non-DoC liquids production and DoC NGLs 64 76 27 61 to 126
Non-DoC production 55 66 23 53 to 109
Stock Levels
Commercial 2,752 2,770 15 2,752 to 2,781
Oil-on-water 1,373 1,452 87 1,373 to 1,545
SPR 1,245 1,238 14 1,206 to 1,245
Total 3,997 3,992 6 3,984 to 3,997
Last updated: 2025-05-07 23:46:58

CFTC CoT Analysis

Sentiment: Bullish but Weakening
Positioning: Normal Range
Report Date: 2025-02-01

Large Speculators

368,904
Change: -4,511
17.6% of OI

Non-Commercial

606,308
Change: -4,897
29.0% of OI

Open Interest

2,093,735
Change: -2,259

Summary Analysis:

CFTC CoT Report as of 2025-02-01

Crude Oil Positioning (Legacy Report):

Open Interest: 2,093,735 contracts (-2,259)

Non-Commercial Net Position: 606,308 contracts (29.0% of OI)

Weekly Change in Non-Commercial Net: -4,897 contracts

Large Speculator Net Position: 368,904 contracts (17.6% of OI)

Market Sentiment: Bullish but Weakening

Positioning Analysis: Normal Range

Key Takeaways:

- Non-commercial (speculative) traders often lead price movements in Crude Oil.

- Extreme positioning can indicate potential market reversals.

- CFTC data reports positions as of the report date, released each Friday at 3:30 PM ET.

About CoT Reports:

The CFTC Commitment of Traders (CoT) reports provide a breakdown of open interest for futures markets.

They show the positions of different types of traders, helping to assess market sentiment and potential price movements.

The Legacy report divides traders into 'Commercial' (hedgers) and 'Non-Commercial' (speculators) categories.

News Analysis

Market Sentiment Overview

NEUTRAL
Average Polarity: -0.057
Confidence: 1.34
Articles Analyzed: 80
Last Updated: 2025-05-07 23:46:58

Commodity Sentiment

CRUDE_OIL

-0.06

Top News Topics

Supply

23 articles

Demand

3 articles

Geopolitical

2 articles

Economic Analysis

Economic Sentiment Summary

NEGATIVE - Economic indicators showing headwinds
Dollar Impact: Weaker USD may support commodity prices
Industrial Demand: Weaker industrial demand signals
Interest Rate Impact: Rising rates may impact energy demand
Risk Sentiment: Moderate market volatility

Economic Indicators

USD_INDEX

99.67
Daily: 0.43 (0.43%)
Weekly: -0.58 (-0.58%)

US_10Y

4.28
Daily: -0.03 (-0.77%)
Weekly: 0.04 (1.04%)

SP500

5631.28
Daily: 24.37 (0.43%)
Weekly: 27.14 (0.48%)

VIX

23.55
Daily: -1.21 (-4.89%)
Weekly: -1.05 (-4.27%)

GOLD

3404.2
Daily: -7.2 (-0.21%)
Weekly: 194.2 (6.05%)

COPPER

4.63
Daily: -0.1 (-2.18%)
Weekly: 0.05 (1.11%)

Fibonacci Analysis

Current Price: $58.54
Closest Support: $55.12 5.84% below current price
Closest Resistance: $59.5 1.64% above current price

Fibonacci Retracement Levels

0.0 $55.12 Support
0.236 $59.5 Resistance
0.382 $62.21
0.5 $64.4
0.618 $66.59
0.786 $69.71
1.0 $73.68

Fibonacci Extension Levels

1.272 $78.73
1.618 $85.15
2.0 $92.24
2.618 $103.71

ML Price Prediction

Current Price: $58.07
Forecast Generated: 2025-05-07 23:46:58
Next Trading Day: DOWN 0.09%
Date Prediction Lower Bound Upper Bound
2025-05-08 $58.02 $54.36 $61.67
2025-05-09 $58.1 $54.45 $61.76
2025-05-10 $58.16 $54.5 $61.81
2025-05-11 $58.04 $54.39 $61.7
2025-05-12 $58.11 $54.46 $61.77

ML Insights

  • Forecast generated using ARIMA(5, 1, 0).
  • The model predicts a price decrease of ~0.09% for the next trading day (2025-05-08), reaching $58.02.
  • The 5-day forecast suggests relatively stable prices between 2025-05-08 and 2025-05-12.
  • The average confidence interval width is ~12.6% of the predicted price, indicating model uncertainty.
  • SIGNAL: Weak bearish signal, high uncertainty.

AI Analysis

💹

For Energy Traders:

Current market dynamics suggest neutral sentiment with potential for volatility given the mixed news sentiment and recent price movements. The Brent-WTI spread of $3.06 indicates a divergence in supply-demand dynamics between global and U.S. markets, which could present short-term trading opportunities.

Be aware of potential support levels around $59.00 (WTI) and $62.00 (Brent) as traders assess price direction. Watch for shifts in CFTC positioning, as a weakening bullish sentiment among non-commercial traders could signal a potential reversal.

⛽

For Producers (Oil & Gas Companies):

The recent decrease in commercial crude stocks by -2032.00 million barrels highlights a tightening inventory situation, which could support pricing in the near term. However, the bearish sentiment surrounding demand, particularly from the EIA's forecast of weak demand, suggests caution in production planning.

Producers should consider hedging strategies to mitigate risks associated with price volatility and uncertain demand. Monitoring the geopolitical landscape and its impact on supply reliability will be crucial for operational planning.

🏭

For Consumers (Industrial/Refineries/Transportation):

With WTI and Brent prices currently at $59.09 and $62.15 respectively, consumers should brace for potential input cost fluctuations. The geopolitical tensions and recent inventory changes could affect supply reliability, making it essential to evaluate procurement strategies.

Given the neutral sentiment in the market, it may be prudent to explore hedging options to protect against price spikes, especially if demand from Europe and China continues to rise.

📊

For Commodity Professionals (Analysts, Consultants):

The Crude Oil market is currently characterized by a neutral overall sentiment, with mixed signals from fundamentals and positioning. The bearish outlook on demand, coupled with a tightening supply indicated by decreasing commercial stocks, suggests a complex market environment.

Key drivers include geopolitical factors and inventory levels, which appear to be the strongest influences on price movements. Analysts should remain vigilant for shifts in CFTC positioning, as speculative traders' actions could lead to significant market changes.

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice or specific buy/sell recommendations.

Energy Markets Report - Generated on 2025-05-07 23:47

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