Oil prices are closing in on two-year highs as OPEC+ has agreed to continue to restrain oil output coupled with ongoing optimism regarding the recovery of global demand. Despite the current supply restraints, OPEC+ is expected to increase output in August following their July 1st meeting. Discussions between the US and Iran have slowed this week with tempered expectations of an increase in Iranian output. Weekly inventory report appeared mixed with a larger than expected draw in supply coupled with a rise in inventories for gasoline and a downtick in in the implied demand readings for gasoline (albeit third week above 9 million bpd), according to the EIA.  The market remains bullish trend as oil volatility (OVX) continues to settle around the 30 handle with today’s range seen between 65.13 – 69.89.

Jul ’21 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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