Sell crude on Obama’s Syria shift: Pro
Crude oil is sliding on Tuesday, as a U.S. military strike of Syria appears less likely. Russia has proposed that Syria hand over its chemical weapons stockpile, and President Barack Obama has agreed to a U.N. discussion of the proposal.
(Read more: Oil hammered as Syria strike odds fade)
The market is beginning to realize that Obama has an out. At this point, I don't believe there is much of a chance that we bomb Syria, and the market seems to agree with me. We have to remember that this administration ran on an anti-war platform. So does the president really want to go directly against public sentiment and enter into a third conflict? I believe the answer to that is no, and that the crude market will now begin to remove the Middle East premium.
The thing is, if you put the Middle East aside, then the crude oil picture looks relatively bearish. The American fleet is becoming more efficient, and supplies are increasing.
(Read more: Strategic oil release talk mounts on Syria view)
So how am I trading oil now?
I am interested in selling October crude at $107, with an objective of $105.50. But I would set a stop at $107.80, just in case Syria heats up again.