Oil prices are taking a breather early in the session after rising sharply on Thursday amid escalating tensions in Kazakhstan as well as supply outages in Libya and to a smaller extent in Nigeria. Kazakhstan currently produces about 1.6 million barrels of oil per day, although it has not been known that any oil production has been affected. Libya is down about 500k barrels per day due to maintenance and oil field shutdowns. OPEC+ agreed on Tuesday to add 400k barrels of supply in February. Crude stocks fell -2.144 million barrels and falling for the sixth consecutive week totaling -16.169 with gasoline inventories gaining more than 10 million barrels as supplies backed up at refineries, according to the EIA. Oil volatility (ovx) has broken through trend support which comes in the lows 40s as oil has transitioned back to the bullish trend with today’s range seen between 73.71 – 80.42.

Crude Oil Feb ’22 Daily Chart
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Alex Turro

Senior Market Strategist

Alex began his career with an IB at the Chicago Board of Trade after graduating with a BA/BS from Indiana University. He then went on to work for a proprietary trading software company before joining RJO Futures as a Market Strategist.

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