Oil prices have continued to ramp higher taking its inflation to +42% since November and rising to its highest price since February after Saudi Arabia committed to supporting prices with voluntary production cuts earlier in the week. This includes a cut of 1 million bpd, which followed a meeting of OPEC+ with producers agreeing to steady output in February and March while allowing Russia and Kazakhstan to moderately increase output by 75k bpd for those two consecutive months. This comes amidst a much larger than expected draw of oil stocks along with a reported increase in fuel inventories, according to the EIA. This drop in stocks was supported by strong export numbers as well as refinery utilization. The market remains bullish trend but is signaling immediate term overbought with today’s range seen between 47.37 – 51.34.

Crude Oil Feb ’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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