WTI Crude Oil Futures Rally North Of $70.00

For the second consecutive day, traders are bidding October WTI crude oil futures heavily. Values have crept north of the $70.00 handle and are threatening to extend session gains. If we see daily settlement above the key psyche level of $70.00, a run at yearly highs in October crude ($71.29) may be in the cards by Friday’s close.

Never discount the power of seasonality when it comes to crude oil. With the U.S. Labor Day weekend rapidly approaching, the oil markets are showing strength. This is very similar to the price action going into the U.S. Memorial Day weekend. Friday, May 31 produced a $1.00 sell-off after a two-day rally — traders are now wondering if Friday, August 31 will bring the same.

October WTI Crude Oil Technical Outlook

At press time, October crude futures are pushing intraday highs, up more than $0.40 for the session. With the closing bell a little over 4 hours away, $70.00 is going to be the featured battleground in this market.

Overview: For now, all eyes are on $70.00, simple as that. Be on the lookout for profit taking and compressed trading in this area as the day wears on.

Going into Friday, oil players will likely be hesitant to assume any new risk. It is the last trading day of August and the beginning of the U.S. Labor Day weekend. Institutional money may be happy to liquidate longs and rack monthly profits. If we see concerted selling on tomorrow’s WTI crude oil traditional pit open (9:00 AM EST), then a trend day down is very possible.