December crude oil prices trended higher in early morning action but remained inside of its recent trading range. Some of the support for crude oil came from news that TransCanada halted flows on their Keystone pipeline into the US Midwest. Some traders suggested that the news was responsible for the upside reversal action yesterday. The outside market tone offers a mild headwind for the crude oil market this morning, with global equity markets on a lower track and the US dollar attracting support. Meanwhile, the fundamental battle in the crude oil market continues, with bulls concerned over geopolitical risks and the bears focusing on sluggish global demand prospects and expectations for growing supplies. As a result, December crude oil continues to carve out a very tight range, with the last eight closes inside of a $1.14 zone.
*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.
Copyright CME Group All rights reserved.