Oil prices have traded within a narrow range within the last couple weeks but appear susceptible to corrective action as record breaking new corona cases have renewed concerns about the pace of the economic recovery as well as the subsequent impact on fuel demand. Despite the International Energy Agency (IEA) increasing its 2020 forecast for oil demand, it was noted that the uncertainty surrounding COVID-19 still poses a heightened risk to outlook. U.S. crude oil inventories rose by nearly 6 million barrels with the annual surplus around 80 million barrels. Prices have been pressured by reports that Libyan oil production will be coming back online after six-month blockade by eastern forces. In addition, tensions between the U.S. and China have heightened as China said that will be responding to U.S. sanctions on Chinese officials over allegations of abuses against the Uigher Muslim minority. The market remains bullish trend amidst this reflation ramp up with today’s range seen between 38.02 – 41.57.

Crude Oil Aug ’20 Daily Chart
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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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