Crude Oil Radar

2025-09-18 18:59

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 18:55:56 Length: 480 chars
Crude oil recently broke above the pivotal $63.80 mark, spurred by concerns over Russian supply risks. However, despite this technical move, the market remains marginally up, with fundamentals suggesting a bearish outlook. The recent dollar strength and fears of an oversupply are weighing on prices, leading to back-to-back losses. Watch for a potential retest of $63.80, as a break above $66.84 could propel prices into the $70s, though a dip into the $50s could follow befor...

Market Summary

Technical Outlook

Moderately Bearish
Score: -2/5
Short: SELL | 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): -2 (Moderately Bearish)
Current Price: $63.57
Signal: Moderately Bearish

Moving Averages (9/20)

BEARISH

MA(9): $63.23

MA(20): $63.6

Current Price is 63.57, 9 day MA 63.23, 20 day MA 63.6

MACD (12, 26, 9)

BULLISH

MACD: -0.3028

Signal: -0.47

Days since crossover: 4

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

RSI (14)

NEUTRAL

Value: 48.74

Category: NEUTRAL

RSI is 48.74 (note 70% is overbought and 30% is oversold)

Volume (vs 20d Avg)

LOWER

Current: 1,086

Avg (20d): 220,143

Ratio: 0.0

Volume is lower versus 20 day average

Stochastic (14, 3)

BEARISH CROSS

%K: 46.29

%D: 56.7

Stochastic %K: 46.29, %D: 56.7. Signal: bearish cross

ADX (14)

NO TREND

ADX: 9.36

+DI: 16.17

-DI: 16.28

ADX: 9.36 (+DI: 16.17, -DI: 16.28). Trend: no trend

Williams %R (14)

NEUTRAL

Value: -53.71

Williams %R: -53.71 (neutral zone)

Bollinger Bands (20, 2)

BELOW MIDDLE

Upper: 65.41

Middle: 63.6

Lower: 61.79

Price vs BBands (20, 2): below 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 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.
  • Steady global economic growth with slight downward revisions in forecasts.
  • Stable growth in world oil demand, particularly in non-OECD regions.
  • Non-OPEC liquids supply growth forecasts revised down.
  • Fluctuations in refinery margins and product market dynamics.

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 173 mb below 2015–2019 average As of March
Compliance Levels with Production Agreements N/A Not Mentioned

OPEC's Stance/Outlook

OPEC maintains a focus on market stability and is closely monitoring global economic indicators and oil demand trends. The organization is prepared to adjust its production strategies to respond to changing market conditions and ensure a balanced supply-demand dynamic.

Direct Quotes

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

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: -0.4
Confidence: 1.0
Articles Analyzed: 65
Last Updated: 2025-09-18 18:58:37

Commodity Sentiment

CRUDE_OIL

-0.4

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

97.36
Daily: 0.49 (0.51%)
Weekly: -0.19 (-0.19%)

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

3675.1
Daily: -6.7 (-0.18%)
Weekly: 25.7 (0.7%)

COPPER

4.6
Daily: 0.03 (0.65%)
Weekly: 0.01 (0.26%)

Fibonacci Analysis

Current Price: $63.57
Closest Support: $61.45 3.33% below current price
Closest Resistance: $63.59 0.03% above current price

Fibonacci Retracement Levels

0.0 $61.45 Support
0.236 $63.59 Resistance
0.382 $64.91
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: $64.05
Forecast Generated: 2025-09-18 18:58:39
Next Trading Day: UP 0.08%
Date Prediction Lower Bound Upper Bound
2025-09-18 $64.1 $62.26 $65.94
2025-09-19 $64.03 $62.19 $65.88
2025-09-20 $63.99 $62.14 $65.83
2025-09-21 $63.92 $62.08 $65.77
2025-09-22 $63.95 $62.11 $65.79

ML Insights

  • Forecast generated using ARIMA(5, 1, 0).
  • The model predicts a price increase of ~0.08% for the next trading day (2025-09-18), reaching $64.10.
  • The 5-day forecast suggests relatively stable prices between 2025-09-18 and 2025-09-22.
  • The average confidence interval width is ~5.8% of the predicted price, indicating model uncertainty.
  • SIGNAL: Bullish signal, moderate uncertainty.

AI Analysis

💹

For Energy Traders:

The recent bearish sentiment indicated by a sentiment score of -0.400 suggests caution in the market. The decline in both the $5.01 for ICE Brent and $4.98 for NYMEX WTI indicates potential resistance levels around $66.46 and $62.96 respectively. Traders should closely monitor the Brent-WTI spread of $3.90, which reflects ongoing supply/demand dynamics and geopolitical factors. The narrowing of the spread might present short-term opportunities for trades, especially if volatility increases due to geopolitical tensions or unexpected supply disruptions.

For Producers (Oil & Gas Companies):

The projected growth in global oil demand of 1.3 mb/d in 2025 remains stable, but producers should be mindful of the bearish market sentiment and declining inventory levels. With OECD commercial crude stocks at 1,323 mb, which is 139 mb below the 2015–2019 average, production planning should account for potential fluctuations in demand. Hedging strategies may need to be adjusted in response to the volatile geopolitical landscape and the current $62.96 WTI price, which may impact revenue forecasts.

🏭

For Consumers (Industrial/Refineries/Transportation):

With the current $67.95 for Brent and $64.05 for WTI, consumers should prepare for potential input cost fluctuations as market volatility persists. The bearish sentiment and declining refinery margins indicate that procurement strategies should focus on securing supplies to mitigate risks associated with geopolitical tensions and fluctuating inventory levels. The recent decline in U.S. crude imports further emphasizes the need for reliable supply channels, especially as global demand is projected to remain stable.

📊

For Commodity Professionals (Analysts, Consultants):

The Crude Oil market is currently influenced by a mix of bearish sentiment and stable demand growth forecasts. Key driving factors include the 1.3 mb/d increase in global oil demand and the decline in OECD crude stocks. The positioning data from CFTC indicates a weakening bullish trend among managed money, suggesting a potential shift in market dynamics. Analysts should focus on the implications of geopolitical risks and the ongoing adjustments in production levels from OPEC and non-OPEC countries, as these will be crucial in forecasting future price movements.

Disclaimer: This analysis is intended for informational purposes only and should not be construed as financial advice or specific buy/sell recommendations.