Oil prices are poised for their fourth consecutive weekly decline as we come into options expiration amid a recent surge of Covid cases in Europe as well as the possibility of the release of strategic reserves. This global coordinated effort is rumored to be led by China who may release 7 million barrels from their strategic reserve. Largely discounted were reports that OPEC+ output last month came in below their expectations. Oil inventories reported a draw of -2.101 million barrels against an expected build, registering its first draw in four weeks, according to the EIA. Stocks are now down -11.5% year over year and 3.1% below the 5-year average. The market remains bullish trend with today’s range seen between 77.14 – 84.78.

Crude Oil Jan ’22 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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