Oil prices are falling early in the session after rebounding yesterday and are poised for a weekly loss as uncertainty surrounding the omicron variant continue to dampen sentiment and raise concerns over fuel demand. OPEC+ has stated that it my convene before their Jan 4th meeting if the demand outlook warrants a change in their plans to add 400k per day in January while simultaneously noting an expected increase in demand for the first quarter of 2022.  In contrast, the International Energy Agency (IEA) came out on Tuesday noting that oil output is set to out outpace demand, specifically domestically, at least through the end of next year. Crude stocks fell -4.584 million barrels with stocks now down -71.810 million barrels below last year and -33.779 million barrels below the five-year average, according to the EIA. Oil volatility (OVX) continues to remain elevated in the mid-upper 40s with the market transitioning to bearish trend with today’s range seen between 65.33 – 73.26.   

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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