Oil prices have been lifted and are on three-month highs following reports of a ‘phase one’ deal being complete as well as a decisive victory by the UK conservative party. Oil prices had remained firm throughout the week on unabating optimism on trade despite a bearish API and EIA weekly crude stockpiles. Prior to, the outlook for oil demand had been clouded by ongoing negations with the upcoming December 15 deadline looming. This comes amidst OPEC and other major producers including Russia agreeing to curtail output by an additional 500k barrels a day through the first quarter of 2020 despite a recent report by the IEA stating that it was trimming its 2020 supply growth forecast by 200k barrels a day to 2.1 million barrels. However, expectations are for global inventories to increase by 700k a day in the first three months of 2020. Daily momentum is positive; however, the market is signaling immediate term overbought within its bullish trend with today’s range seen between 56.60 – 60.81.

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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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