Crude Oil Radar

2025-09-20 23:50

Table of Contents

Brian's Thoughts

Published: 09/20/2025 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: 2025-09-20 23:46:25 Length: 480 chars
Crude Oil recently broke above $63.80, influenced by concerns over Russian supply risks. However, this spike appears marginal, with bearish fundamentals suggesting a potential retreat back to the $50s before a stronger bullish trend emerges. Current market dynamics are challenged by a strengthening dollar and increasing global oil supplies, keeping prices under pressure. Traders should monitor the $66.84 resistance level closely, as surpassing it could indicate a move towa...

Market Summary

Technical Outlook

Moderately Bearish
Score: -2/5
Short: SELL | Medium: BUY | Long: SELL

International Prices

Brent: $66.68 $0.76
WTI: $62.68 $0.89
Spread: $4.0 (Brent premium of $4.00)

Key Fundamentals

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

News Sentiment

BEARISH

Spec Positioning

Net Position: 36,799
Weekly Change: 26,797

Technical Analysis

Overall Technical Score (-5 to +5): -2 (Moderately Bearish)
Current Price: $62.68
Signal: Moderately Bearish

Moving Averages (9/20)

BEARISH

MA(9): $63.28

MA(20): $63.56

Current Price is 62.68, 9 day MA 63.28, 20 day MA 63.56

MACD (12, 26, 9)

BULLISH

MACD: -0.3465

Signal: -0.4453

Days since crossover: 5

MACD crossed the line 5 days ago and is in a bullish setup

RSI (14)

NEUTRAL

Value: 45.03

Category: NEUTRAL

RSI is 45.03 (note 70% is overbought and 30% is oversold)

Volume (vs 20d Avg)

LOWER

Current: 82,321

Avg (20d): 212,371

Ratio: 0.39

Volume is lower versus 20 day average

Stochastic (14, 3)

BEARISH CROSS

%K: 26.86

%D: 43.3

Stochastic %K: 26.86, %D: 43.3. Signal: bearish cross

ADX (14)

NO TREND

ADX: 9.79

+DI: 14.89

-DI: 19.25

ADX: 9.79 (+DI: 14.89, -DI: 19.25). Trend: no trend

Williams %R (14)

NEUTRAL

Value: -73.14

Williams %R: -73.14 (neutral zone)

Bollinger Bands (20, 2)

BELOW MIDDLE

Upper: 65.41

Middle: 63.56

Lower: 61.7

Price vs BBands (20, 2): below middle. Upper: 65.41, Middle: 63.56, Lower: 61.7

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 $66.68, change $-0.76. WTI crude (OCT 25) settled at $62.68, change $-0.89. The Brent-WTI spread is currently $4.0 (Brent premium of $4.00). The Brent-WTI spread reflects differences in global vs. U.S. supply/demand dynamics, geopolitics, and transportation costs.

Brent Crude

$66.68
0.76
(NOV 25)

WTI Crude

$62.68
0.89
(OCT 25)

Brent-WTI Spread

$4.0
Brent premium of $4.00

OPEC Analysis

OPEC Market Analysis

Executive Summary:

The current OPEC market situation reflects a slight decline in crude oil prices amid stable global economic growth. With a balanced supply-demand outlook, OPEC's production adjustments are crucial to maintaining market stability in the face of fluctuating demand forecasts.

Key Market Metrics:

Category Production (mb/d) Demand (mb/d)
World Production
  • Americas: 25.10
  • Europe: 13.54
  • Asia Pacific: 7.17
  • Total OECD: 45.81
  • China: 16.85
  • India: 5.70
  • Other Asia: 9.91
  • Latin America: 6.89
  • Middle East: 9.01
  • Africa: 4.80
  • Russia: 4.02
  • Other Eurasia: 1.31
  • Other Europe: 0.82
  • Total Non-OECD: 59.33
  • Americas Demand: 25.10
  • Europe Demand: 13.54
  • Asia Pacific Demand: 7.17
  • Total OECD Demand: 45.81
  • China Demand: 16.85
  • India Demand: 5.70
  • Other Asia Demand: 9.91
  • Latin America Demand: 6.89
  • Middle East Demand: 9.01
  • Africa Demand: 4.80
  • Russia Demand: 4.02
  • Other Eurasia Demand: 1.31
  • Other Europe Demand: 0.82
  • Total Non-OECD Demand: 59.33
  • Total World Demand: 105.14

Supply-Demand Balance Analysis:

The current data indicates a balanced supply-demand scenario with total world production at 105.14 mb/d against total world demand of 105.14 mb/d. This equilibrium suggests no immediate surplus or deficit, which is critical for maintaining price stability in the market.

Production Landscape:

Key producers such as the US, Canada, and Brazil continue to drive non-DoC production, contributing significantly to the overall supply. The OPEC countries participating in the DoC have shown a slight increase in production, averaging about 42.40 mb/d, indicating a strategic response to market conditions.

Demand Patterns:

Demand growth is primarily driven by the non-OECD countries, particularly China and India, which are projected to see increases of 1.2 mb/d and 0.2 mb/d respectively in 2025. This trend highlights the shifting demand dynamics towards emerging markets, while OECD demand remains relatively stable.

Non-DoC vs DoC Analysis:

Non-DoC production is forecasted to grow by about 0.8 mb/d in 2025, with the US leading this growth. In contrast, DoC production is expected to increase modestly, suggesting that while Non-DoC producers are ramping up output, OPEC's controlled production strategy remains vital for market stability.

OPEC's Strategic Position:

OPEC's current market position is characterized by a cautious approach to production adjustments in response to global demand fluctuations. The organization is likely to continue its strategy of balancing production to support prices while accommodating the growth in non-OECD demand.

Forward-Looking Indicators:

As we look ahead, the trends indicate a potential tightening of the market in 2026, driven by increased demand from non-OECD countries. OPEC's ability to manage its production levels will be crucial in responding to these changes and maintaining price stability.

Key Insights and Recommendations:

  • Monitor the production levels of major non-DoC producers as they may impact OPEC's pricing strategy.
  • Focus on emerging markets, particularly China and India, for demand growth opportunities.
  • Maintain flexibility in production adjustments to respond to market dynamics effectively.
  • Consider potential geopolitical risks that may affect supply chains and market stability.
  • Engage in proactive communication with market participants to manage expectations and mitigate volatility.

CFTC CoT Analysis

Sentiment: Bullish and Strengthening
Positioning: Normal Range
Report Date: 2025-09-16

Managed Money

36,799
Change: +26,797
1.9% of OI

Producer/Merchant

292,741
Change: -8,659
14.9% of OI

Swap Dealers

-407,490
Change: -3,935
-20.8% of OI

Open Interest

1,962,620
Change: 5,505

Summary Analysis:

CFTC Commitment of Traders Report (Disaggregated) as of 2025-09-16

Crude Oil Positioning (WTI-PHYSICAL - NYMEX):

Open Interest: 1,962,620 contracts (+5,505)

Managed Money Net Position: 36,799 contracts (1.9% of OI)

Weekly Change in Managed Money Net: +26,797 contracts

Producer/Merchant Net Position: 292,741 contracts

Swap Dealer Net Position: -407,490 contracts

Market Sentiment (based on Managed Money): Bullish and Strengthening

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: 48
Last Updated: 2025-09-20 23:49:14

Commodity Sentiment

CRUDE_OIL

-0.6

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

97.64
Daily: 0.29 (0.3%)
Weekly: 0.34 (0.35%)

US_10Y

4.14
Daily: 0.03 (0.85%)
Weekly: 0.11 (2.6%)

SP500

6664.36
Daily: 32.4 (0.49%)
Weekly: 49.08 (0.74%)

VIX

15.45
Daily: -0.25 (-1.59%)
Weekly: -0.24 (-1.53%)

GOLD

3671.5
Daily: 27.8 (0.76%)
Weekly: -10.7 (-0.29%)

COPPER

4.57
Daily: 0.03 (0.62%)
Weekly: -0.09 (-1.86%)

Fibonacci Analysis

Current Price: $62.68
Closest Support: $61.45 1.96% below current price
Closest Resistance: $63.59 1.45% 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: $62.68
Forecast Generated: 2025-09-20 23:49:16
Next Trading Day: DOWN 0.06%
Date Prediction Lower Bound Upper Bound
2025-09-20 $62.64 $60.76 $64.52
2025-09-21 $62.6 $60.72 $64.48
2025-09-22 $62.66 $60.78 $64.54
2025-09-23 $62.71 $60.83 $64.59
2025-09-24 $62.76 $60.88 $64.64

ML Insights

  • Forecast generated using ARIMA(5, 1, 0).
  • The model predicts a price decrease of ~0.06% for the next trading day (2025-09-20), reaching $62.64.
  • The 5-day forecast suggests relatively stable prices between 2025-09-20 and 2025-09-24.
  • The average confidence interval width is ~6.0% of the predicted price, indicating model uncertainty.
  • SIGNAL: Bearish signal, moderate uncertainty.

AI Analysis

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For Energy Traders:

Crude oil prices are experiencing a bearish sentiment, with the OPEC Reference Basket falling to an average of $69.73/b in August. The widening Brent-WTI spread of $4.00 indicates potential volatility in price differentials, suggesting traders should monitor geopolitical developments closely. The market's current backwardation reflects solid physical fundamentals, but speculative selling pressure may signal caution. Key Fibonacci resistance levels should be identified for short-term trading strategies, especially as hedge funds have turned net short.

For Producers (Oil & Gas Companies):

With global oil demand forecasted to grow by 1.3 mb/d in 2025, producers should consider adjusting production planning to align with this anticipated demand. The current inventory levels, particularly in OECD countries, are lower than historical averages, indicating potential for price recovery if demand holds steady. The hedging strategies may need to be revisited as market sentiment remains bearish, particularly in light of high crude imports into the US and uncertainties surrounding geopolitical factors.

🏭

For Consumers (Industrial/Refineries/Transportation):

Consumers should prepare for potential fluctuations in input costs as WTI and Brent prices remain under pressure. The geopolitical risks surrounding Russian supply may lead to supply reliability concerns. Additionally, the recent increase in US crude imports to 6.5 mb/d could impact procurement strategies. Monitoring refinery margins, which have shown strength in the USGC, will be critical for refining operations and product pricing strategies.

📊

For Commodity Professionals (Analysts, Consultants):

The Crude Oil market shows a complex interplay of bearish sentiment driven by both demand concerns and speculative positioning. Key factors include stable global economic growth forecasts, yet inventory levels are significantly below historical averages, suggesting potential price support in the medium term. The disaggregated positioning data indicates that managed money traders are net short, which may signal a market reversal if conditions shift. Analysts should closely watch the evolving geopolitical landscape and its impact on supply dynamics.

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