RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Energies

Oil Prices Forge Temporary Top

Posted 11/08/2019 8:33AM CT | Alexander Turro

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.

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Alexander Turro

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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