Energy Market Struggles Continue

Energy markets have been under pressure since the recent highs in mid January. Today, markets like Crude Oil and Natural Gas are seeing selling pressure as both are trading near critical trading levels. The March Crude Oil contract saw a strong move to the upside looking to test the April 2024 highs, and the market entered overbought territory which could have led to some selling pressure. Traders will be watching the Crude Inventories report released tomorrow to gain a better understanding of the current supply and the direction it is moving.

Getting away from the technical side of Crude Oil, there is a significant amount of uncertainty surrounding the future supply of Oil, with geopolitical tensions across the world and added tariffs. This market, with both volatility and uncertainty, shines light on the importance of choice of size when trading CME products. The Crude Oil contracts range from the full sized contract at 1,000 barrels, the mini contract at 500 barrels, and the micro contract at 100 barrels giving traders the ability to choose a smaller or larger size based on their own risk tolerance.

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**All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.