Oil is under pressure in the early session following a continual daily grind higher and is on pace for third straight week of gains despite a surprise decline in U.S. crude stockpiles on Wednesday. Sentiment has largely settled with oil trading near three-month highs amid improving demand expectations following the completion of a ‘phase one deal’ between the U.S. and China. This comes as a U.S. probe has reported that the attack on the Saudi oil facilities in September came from the north, reinforcing earlier assumptions that Iran was behind the attack, which only serve to heighten geopolitical risk. Prices have also gained momentum from OPEC and other major producers agreeing to further output production cuts. This has come despite the waning open interest and thin volume around the holiday season. The market remains bullish trend but signaling immediate term overbought with today’s range seen between 58.50 – 61.66.

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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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