The spot price for WTI Crude Oil (
) futures tumbled today to a two week low with an intraday low of
$100.37 a barrel. Market participants are in a holding pattern
ahead of the tomorrow's weekly supply data report scheduled for
10:30 am Wednesday.
The price of WTI has been trading within an acceding wedge until
breaking out below the wedge this morning. Support on the daily
chart is found at July 15 low of $99.01
Expectations for the Energy Information Administration report
are for 400k to 1 million drop in storage supplies. Anything less
will be seen as bearish demand for the largest oil consumer.
Speculation on the street is for a significant drop in storage
after extremely economic bullish news concerning U.S. consumer.
This morning the July Consumer Confidence report indicated an
increase of consumer confidence with a reading of 90.9 compare to
last month's 86.4. Expectations were for decline to 85.3.
Market participants are likely to remain cautious in the
energy patch as their focus will now be on the Federal Reserve's
policy meeting that began today with a the wrap up of the FOMC
Statement and Federal Fund Rate decision set for 2pm
Expectations are for the FOMC is to maintain its tapering plan
with another reduction of $10 billion bringing down the total
bond purchasing program to $25 billion per month.
Pressure is likely to remain on the space as we head into the
inventory report and the Fed decision all the while traders will
be keeping an eye on decision from the euro zone to increase
sanctions on Russia (