Oil is in the news today with crude futures at a potentially key level.
The main item came this morning from the U.S. State Department, which took a hard line against Iran. Washington is reportedly demanding that companies stop shipping oil from the terrorist state by the start of November. That’s a tougher stance than allowing a gradual phase-out.
The key points are potentially bullish for oil prices:
- Less crude on the market sooner
- President Trump is playing hardball with Tehran after scrapping President Obama’s nuclear deal.
Earlier in the day, two conflicting stories hit. First were worries about Libyan supplies getting disrupted (bullish for price). Countering it was a report that the Saudis plan to increase oil production next month. Those two stories now fade before the Iranian news. Remember that crude-inventory reports are due tonight from the American Petroleum Institute and tomorrow morning from the Energy Department.
Looking at the chart, crude oil futures (@CL) are back above their 50-day moving average for the third straight session. They’re also set for their highest close in a month. That could make some chart watchers look for the longer-term uptrend to resume.