Oil for July delivery has continued to forge higher highs amidst reports of favorable Chinese demand prospects as the Chinese National Petroleum Company forecasted a 2% year over year increase in imports as well as an increase in consumption of 1% to 2%. This has been coupled with reports that Asian-Pacific refinery run rates are increasing due to an uptick in product demand. In addition, EIA crude stocks fell 4.982 million barrels with reports of a decline of US crude oil stocks of nearly 16 million barrels since May. OPEC and allies have agreed to cut by a record of 9.7 million barrels per day from May 1 with reports that oil exports have been cut by about 6 million barrels thus far. Notwithstanding, oil volatility (OVX) remains highly elevated with the market remaining bearish trend and signaling immediate term overbought with today’s range coming in between 22.61 – 36.77.

Crude Oil Jul ’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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