Oil prices are softer by 1% on Friday as more US offshore production continues to come back online despite indications by US Gulf market regulators that 28% of US Gulf production remains unavailable. Crude stocks declined -6.42 million barrels for the sixth consecutive draw, according to the EIA. Stocks are now -786 mb below last year’s levels and -27.78 mb below the five-year average. To note, Saudi Arabian oil exports reached a 6-month high as OPEC+ is continues to ramp up output for the rest of the year. This comes as OPEC and the IEA reported that oil demand could reach 100 million barrels per day as soon as the second quarter of next year.   Oil volatility (OVX) has continued to fall to cycle lows with the market remaining bullish trend with today’s range seen between 68.32 – 73.33.

Crude Oil Oct ’21 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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