Oil prices fell nearly 4% yesterday on a dampening global demand outlook as well as a rise in output from OPEC adding to the already negative supply side fundamentals. The selloff has only continued this morning with the market down nearly 5% on reports that POTUS has been diagnosed with the coronavirus. The increase in supply came largely from Libya and Iran, who are both except from production cuts set by OPEC+, with September output increasing 160k barrels per day from August. Some support may have been garnered earlier in the week from reports of progress in US stimulus talks as well as weekly inventories showing a decline of 2 million barrels. Oil volatility (OVX) has entered a bad bucket regime with the market remaining bearish trend with today’s range seen between 36.51 – 40.14.

Crude Oil Nov ’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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