WTI Crude Remains Bullish Despite Recent Volatility, Still Room to Run Before 2024 Election

WTI crude oil has seen increased volatility recently, sparking discussion of whether the market is broken. But from a structural viewpoint, both sides of the market remain bullish based on the latest COT report.

Crude oil's forward curve has been in backwardation since April 2021, indicating bullish oil fundamentals both globally and in the US. This provides support for net-long futures positions.

Despite recent volatility, WTI crude oil prices have fallen back into their previous 10-year trading range of $57 to $87 per barrel based on weekly closes.

Factors impacting oil prices include market tinkering, global events like the pandemic, releases from the Strategic Petroleum Reserve, and OPEC+ production cuts.

While volatile, WTI crude may not actually be "broken" yet and still has room to run before the next US Presidential election. Fundamentals remain bullish overall.