Crude Oil faces Heightened Volatility with Cyber Attack

Traders will be watching the June WTI Crude Oil opening on Sunday to see whether the shutdown on Friday following a Cyber Attack on the largest U.S. fuel pipeline system, Colonial Pipeline, has had any effect on prices. The news has sparked fears that if the disruption does not end soon, gasoline and diesel prices will rise ahead of the peak summer driving season.

June WTI Crude Oil closed at $64.90 on Friday, up $0.19 or 0.29 percent. Since the shutdown will reduce gasoline and diesel supply, prices in those markets are expected to rise at the start of the day, but crude prices will fall if refineries need less crude. This would result in a supply backlog, which would be bearish.

Expect increased volatility at this moment, as the market’s path is being questioned. According to the daily swing map, the key trend is up. Since the creation of the closing price reversal top on May 5, however, momentum has been trending lower. A trade via $66.76 negates the closing price reversal top and signals the uptrend to resume.

On a trade through $62.91, the key trend will shift to the downside. $62.91 to $66.76 is the minor range. The market closed on its pivot at $64.84 on Friday. $67.29 to $57.29 is the short-term range. Its retracement zone, which runs from $63.47 to $62.29, could act as support. This zone is also in control of the market’s short-term course.

$59.17 to $57.25 is the largest support zone. Trader reaction to the minor pivot at $64.84 is likely to decide the course of the June WTI Crude Oil market on Monday.