Oil prices are edging higher as of Friday morning and are set for their fourth consecutive week of gains amid supply constraints as well as a softer US Dollar, which has developed an inverse correlation of about -0.70 on both a 15 day as well as a 30-day duration. This comes as the US and China are set to release crude reserves prior to the Lunar New Year Holiday with the US Energy Department stating on Thursday that it had sold 18 million barrels of oil. In addition, China reported that its 2021 imports declined for the first time in nearly two decades. Oil stocks fell -4.553 million barrels for the seventh consecutive week totaling -20.722 million barrels in that time. Stocks are now down -68.913 million barrels below last year and -35.879 million barrels below the five-year average. The market has transitioned to bullish trend with today’s range seen between 74.23 – 83.46.

Crude Oil Feb ’22 Daily Chart
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Alex 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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