Oil Prices Forge Temporary TopPosted 11/08/2019 8:33AM CT |
Oil prices have come off their recent high and have made what appears to be a temporary top after perceived U.S.-China trade optimism. China has been insistent on substantiated tariff relief as part of the ‘Phase-1’ deal, which would set to ease broad global demand concerns. The trade has largely discounted that Chinese crude oil imports posted an all-time high of 10.72 million barrels per day with year over year imports up more than 11%. OPEC Secretary General noted that that the oil outlook for 2020 is favorable, with no immediate need for further cuts and renewed focus on compliance. This comes amidst yet another jump in EIA crude oil stocks of 7.929 million barrels which are 14.995 million barrels above year ago levels. Despite oils recent reflation in price, volatility continues to break down with the OVX near the 31 handle. The market remains bullish trend but has pulled back from the top the range with today’s range seen between 54.16 – 57.96.