Crude Oil (CL1!): Waiting for the perfect entry after decline

Sep 27

We have continued to see crude oil prices fall lower and lower since we first analyzed it five months ago. The recent price decline is largely attributed to a worsening demand outlook. According to Commerzbank, the post-pandemic normalisation of demand growth in China has sharply deteriorated. Between April and July, oil demand was even lower than the previous year, and data released last weekend offers little hope for improvement in Chinese crude oil processing for August.

Additionally, the International Energy Agency (IEA) has revised its forecast for global oil demand down to 900,000 barrels per day, with China accounting for just 20% of that growth. What was once a driver of demand is now seen as a drag on the market. The IEA projects that oil demand in China will rise by 260,000 barrels per day by 2025.

With the continued struggles of global oil demand on one side and Middle East tensions on the other, it makes sense to set a limit order on crude oil as we closely watch how well CL1! respects the key levels on the chart. We're still targeting the $63.23-$57 range for a potential buy-in as we continue to monitor the market for an ideal entry point.

Oct 14

Note

We are still targeting our limit order for Crude Oil and have an update for you.