Oil fell below $22 in the early session as global demand concerns continue to proliferate due to the corona pandemic, pressuring producers and refiners and comes as the market weighs the potential benefits of stimulus efforts. Global oil demand could fall upwards of 20 million bpd in April further deepening from an expected plunge of 10.5 million bpd in March, which would far overwhelm any supply response. Earlier in the week, the US Energy Department had to rescind offers to buy from shale producers, which would have targeted small to mid-size producers. Storages are starting to fill with inland tanks for heating oil in Germany are full with Pakistan banning oil imports on Thursday. The market remains bearish trend with today’s range seen between 19.59 – 25.39.

Crude Oil Jun ’20 Daily Chart
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Alex 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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