Oil prices are poised for a weekly loss of over 3% as the market assess rising supply amidst reports that OPEC+ will be gradually increasing supplies by 2 million barrels per day from May through July, as well as the subsequent impact on fuel demand from the ongoing pandemic. Global inventories, however, are expected to continue to fall as the demand outlook gradually improves as the global recovery accelerates. While the initial fall in weekly oil stocks fell was supportive, gasoline stocks jumped sharply, ahead of the expected increase in seasonal demand, according to the EIA. This comes amid an increase in the refinery rate of about 25% over the course of the last month. Oil volatility (OVX) continues to fall as the market remains bullish trend with today’s range seen between 58.01 – 63.15.

Crude Oil May ’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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