WTI Crude Oil futures surprised with upside strength yesterday. Driven by strong technical momentum and a large speculator short position reported on Friday, the limited news flow for the day provided a clean runway for a rally.

There were reports that Ukraine had damaged Russian export facilities in the Baltic region, which also contributed to the rally.

Overnight, Trump fired the Fed’s Cook. The firing was largely expected to come from Powell, and the fact that Trump broke the news is eroding some US dollar credibility. This type of “sell America” trade, which we saw in April, is something to keep an eye on. Crude Oil is lower this morning on a risk-off move tied to this firing.

Technical Analysis:

Futures punched above the 64.20*** key resistance level with ease yesterday and have reestablished themselves within the trading range seen throughout July between 64.30*** and 66.33***. The next resistance point within reach lies between 65.15-65.30***, which marks a key settlement on the move downward spurred by Russian talks as well as multiple settlements throughout July.

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