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- WTI December 2025 December 2026 Spread
July 21,2025
Overview
Almost one month ago on June 27, we highlighted this WTI December 2025 / December 2026 spread and suggested that it would revert to prior supports and resistances from early June after seeing a strong up move in mid-June.
The notion of previous support and resistance being the operative levels is all the more borne out by the sideways trading pattern that the spread has seen over the past 3 weeks.
The spread seems to be buffeted by the same factors that are likely to keep the flat price "range-bound" as analysts have pointed out today.
Tariffs/trade concerns and added supply from OPEC+ in the coming months will be negatives for the spread and flat price. While geopolitical tension and sanctions against Venezuela, Russia and possibly Iran are supportive elements for the flat price and hence the spread.
Technically the spread has been in a range this month between the 10 cents low seen on the first of the month and the high of $1.41 seen Friday amid worries over Russian sanctions; Russian sanctions have been discounted for crude oil in news wire accounts today as they are said to have "minimal impact".
Technically momentum for the spread is trying to turn negative today as the value of the spread has slipped back below $1.00.
Support for the December 2025 versus December 2026 is seen at +41/+43 cents and then at -6/-9 cents. Strong support lies down at -73/-76 cents.
Upside resistance for the December 2025 versus the December 2026 is seen at high seen Friday at $1.40/$1.41, then at $2.07/$2.08 and above that we see strong resistance at the $2.63 area.
Lastly, technically we see the bollinger bands tightening which suggests that the spread is about to see a move out of the recent range. The tightening though does not give an indication as to which way the spread may move.
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Disclaimer
This article and its contents are provided for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any commodity, futures contract, option contract, or other transaction. Although any statements of fact have been obtained from and are based on sources that the Firm believes to be reliable, we do not guarantee their accuracy, and any such information may be incomplete or condensed.
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