Crude was pairing between gains and losses but had reversed early to move lower in the afternoon session Thursday, following a surprise build in oil stocks with U.S. production at a new record high despite a decline in the rig count. This comes amidst OPEC’s prediction for a ‘sharp’ slowdown in American shale output. Ahead of its meeting early next month in Vienna, OPEC set expectations for lower demand despite a lessening of supply, which would encourage a continuation of cuts. Chinese oil demand continues to be under scrutiny following mixed data with a slowdown in industrial output and a jump of 9.2% in oil refinery throughput. The market remains bullish trend and with inflation set to accelerate through the end of Q4, look to buy dips (as well as other energy products) closer to the low end of the ranges with today’s range seen between 54.85 – 58.02.

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Alexander 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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