Oil rose to a three-month high ahead of the upcoming OPEC meeting amid data showing the economy defied expectations and added jobs in May. The OPEC plus meeting was expected to be canceled next week due to non-compliance by Iraq, however, it would appear that the meeting will take place this weekend with Russia indicating that it would not attend unless an agreement would be set. An extension of cuts with full compliance would include a removal of over 7 million to upwards of 9.7 million barrels per day. However, following July OPEC plus supply cut will be reduced by 2 million barrels a day and therefore you will need to see an increase in demand to offset return of supply as WTI approaches $40 a barrel. Notwithstanding, oil vol (OVX) remains highly elevated and the market bearish trend with today’s range seen between 30.66 – 38.67.

Crude Oil Jul ’20 Daily Chart
800-438-4805312-373-5484Series 3 Licensed

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.
Read More