As the IEA Warns of an Oil Supply Glut, Make This 1 Trade Here

December micro WTI crude oil (CLZ25) futures present a selling opportunity on more price weakness.

See on the daily bar chart for December crude oil futures that a price downtrend is in place and the bears have the slight near-term technical advantage as prices hover just above key technical support at the August low.

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Fundamentally, global crude oil demand growth is slowing at the same time crude oil supplies are on the rise, including a recent OPEC-plus increase in its collective production quota. The International Energy Agency recently warned of a global crude oil supply glut that is coming.

A move in December crude oil futures below solid chart support at the August low of $60.57 would give the bears more power and it would also become a selling opportunity in the micro WTI crude oil futures. The downside price objective would be $53.00 or below. Technical resistance, for which to place a protective buy stop just above, is located at $64.00.

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IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): 

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