Crude Oil Radar

2025-09-17 11:01

Table of Contents

Brian's Thoughts

Published: 09/17/2025 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: 2025-09-17 10:58:06 Length: 480 chars
Crude oil recently broke above the pivotal $63.80 mark, driven by rising concerns over Russian supply risks. While this technical move suggests potential for further gains, particularly if prices exceed $66.84, the underlying fundamentals appear bearish. Analysts predict a temporary bullish phase before a possible dip to the $50s, followed by a strong bull run. As the market remains focused on geopolitical factors and economic signals, traders should monitor these key leve...

Market Summary

Technical Outlook

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

International Prices

Brent: $68.47 $1.03
WTI: $64.52 $1.22
Spread: $3.95 (Brent premium of $3.95)

Key Fundamentals

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

News Sentiment

BULLISH

Spec Positioning

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

Technical Analysis

Overall Technical Score (-5 to +5): -1 (Neutral)
Current Price: $64.35
Signal: Neutral

Moving Averages (9/20)

BEARISH

MA(9): $62.96

MA(20): $63.49

Current Price is 64.35, 9 day MA 62.96, 20 day MA 63.49

MACD (12, 26, 9)

BULLISH

MACD: -0.4297

Signal: -0.5591

Days since crossover: 2

MACD crossed the line 2 days ago and is in a bullish setup

RSI (14)

NEUTRAL

Value: 52.27

Category: NEUTRAL

RSI is 52.27 (note 70% is overbought and 30% is oversold)

Volume (vs 20d Avg)

LOWER

Current: 75,410

Avg (20d): 224,827

Ratio: 0.34

Volume is lower versus 20 day average

Stochastic (14, 3)

BULLISH CROSS

%K: 63.32

%D: 43.6

Stochastic %K: 63.32, %D: 43.6. Signal: bullish cross

ADX (14)

NO TREND

ADX: 10.58

+DI: 17.35

-DI: 16.98

ADX: 10.58 (+DI: 17.35, -DI: 16.98). Trend: no trend

Williams %R (14)

NEUTRAL

Value: -36.68

Williams %R: -36.68 (neutral zone)

Bollinger Bands (20, 2)

ABOVE MIDDLE

Upper: 65.35

Middle: 63.49

Lower: 61.62

Price vs BBands (20, 2): above middle. Upper: 65.35, Middle: 63.49, Lower: 61.62

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 $68.47, change $+1.03. WTI crude (OCT 25) settled at $64.52, change $+1.22. The Brent-WTI spread is currently $3.95 (Brent premium of $3.95). The Brent-WTI spread reflects differences in global vs. U.S. supply/demand dynamics, geopolitics, and transportation costs.

Brent Crude

$68.47
1.03
(NOV 25)

WTI Crude

$64.52
1.22
(OCT 25)

Brent-WTI Spread

$3.95
Brent premium of $3.95

OPEC Analysis

OPEC Narrative Analysis

Overall Sentiment

OPEC's sentiment appears cautious, reflecting concerns over market stability amid fluctuating oil prices and mixed economic growth forecasts.

Key Themes

  • Decline in crude oil prices across various benchmarks.
  • Revised global economic growth forecasts, with mixed results across major economies.
  • Stable growth in world oil demand, particularly in non-OECD countries.
  • Adjustments in non-OPEC liquids supply growth forecasts.
  • Changes in commercial oil stock levels and their implications for market balance.

Key Metrics and Forecasts

Metric Value/Forecast Source/Comment
World Oil Demand Growth (2025) 1.3 mb/d Unchanged from last month’s assessment
World Oil Demand Growth (2026) 1.3 mb/d Unchanged from last month’s assessment
Non-OPEC Liquids Supply Growth (2025) 0.8 mb/d Revised down by 0.1 mb/d
Non-OPEC Liquids Supply Growth (2026) 0.8 mb/d Revised down by 0.1 mb/d
Call on OPEC Crude (2025) 42.6 mb/d Revised upward by 0.1 mb/d
Call on OPEC Crude (2026) 42.9 mb/d Revised upward by 0.1 mb/d
OECD Commercial Stock Deviation from 5-year average 173 mb below As of March
Compliance Levels with Production Agreements Not Mentioned N/A

OPEC's Stance/Outlook

OPEC maintains a focus on market stability, acknowledging the challenges posed by fluctuating demand and supply dynamics. The organization is likely to continue monitoring global economic indicators closely and may adjust production strategies to support price stability.

Direct Quotes

"The global economy continues to demonstrate a steady growth trend despite recent tariff-related developments."
"Demand for DoC crude is revised upward, reflecting a more optimistic outlook for OPEC's market share."

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

BULLISH
Average Polarity: 0.6
Confidence: 1.0
Articles Analyzed: 43
Last Updated: 2025-09-17 11:01:06

Commodity Sentiment

CRUDE_OIL

0.6

Economic Analysis

Economic Sentiment Summary

POSITIVE - Economic indicators generally supportive
Dollar Impact: Weaker USD may support commodity prices
Industrial Demand: Strong industrial demand signals
Interest Rate Impact: Stable/lower rates may support demand
Risk Sentiment: Low market volatility/risk appetite

Economic Indicators

USD_INDEX

96.74
Daily: -0.56 (-0.58%)
Weekly: -1.04 (-1.07%)

US_10Y

4.03
Daily: -0.03 (-0.71%)
Weekly: -0.04 (-1.03%)

SP500

6601.14
Daily: -14.14 (-0.21%)
Weekly: 69.1 (1.06%)

VIX

16.38
Daily: 0.69 (4.4%)
Weekly: 1.03 (6.71%)

GOLD

3718.6
Daily: 36.4 (0.99%)
Weekly: 75.0 (2.06%)

COPPER

4.62
Daily: -0.03 (-0.71%)
Weekly: 0.07 (1.59%)

Fibonacci Analysis

Current Price: $64.35
Closest Support: $63.59 1.18% below current price
Closest Resistance: $64.91 0.87% 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: $63.3
Forecast Generated: 2025-09-17 11:01:09
Next Trading Day: DOWN 0.03%
Date Prediction Lower Bound Upper Bound
2025-09-16 $63.28 $61.48 $65.09
2025-09-17 $63.24 $61.44 $65.05
2025-09-18 $63.29 $61.49 $65.1
2025-09-19 $63.26 $61.45 $65.07
2025-09-20 $63.23 $61.42 $65.03

ML Insights

  • Forecast generated using ARIMA(5, 1, 0).
  • The model predicts a price decrease of ~0.03% for the next trading day (2025-09-16), reaching $63.28.
  • The 5-day forecast suggests relatively stable prices between 2025-09-16 and 2025-09-20.
  • The average confidence interval width is ~5.7% of the predicted price, indicating model uncertainty.
  • SIGNAL: Bearish signal, moderate uncertainty.

AI Analysis

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For Energy Traders:

Current market signals indicate a bullish sentiment, supported by a sentiment score of +0.600. The Brent-WTI spread of $3.95 reflects ongoing supply/demand dynamics, with Brent maintaining a premium due to geopolitical factors. Traders should monitor the $66.46 level for Brent and $62.96 for WTI as potential support levels. Given the narrowing spread and recent price movements, there may be short-term opportunities for profit-taking or hedging against volatility as the market adjusts to inventory changes and geopolitical tensions.

For Producers (Oil & Gas Companies):

The recent decline in OPEC Reference Basket prices and NYMEX WTI could necessitate adjustments in production planning and hedging strategies. With OECD commercial crude stocks at 1,323 mb, which is 139 mb below the 2015–2019 average, producers may need to evaluate their output levels to align with the revised demand forecasts for DoC crude, which is projected to increase. The volatile market sentiment suggests that maintaining flexibility in production could be beneficial as demand dynamics evolve.

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For Consumers (Industrial/Refineries/Transportation):

Consumers should prepare for potential fluctuations in input costs, particularly with the current Brent and WTI prices around $68.47 and $64.52, respectively. The risk of supply disruptions due to geopolitical factors, especially concerning Russian crude supplies, may impact procurement strategies. The current inventory levels, with a decline in product stocks, suggest that securing supply contracts ahead of time could mitigate cost volatility in the near term.

📊

For Commodity Professionals (Analysts, Consultants):

The Crude Oil market is exhibiting a mixed picture with bullish sentiment driven by geopolitical tensions and supply concerns, yet tempered by recent price declines. Key drivers include a steady growth in global oil demand and a slight decrease in non-DoC supply forecasts. The managed money positioning indicates a potential market reversal, with a weakening bullish sentiment as open interest declines. Analysts should closely monitor these factors and their implications for future price movements and market dynamics.

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