Oil prices are bouncing back after hitting a three-week low on Thursday as the US economy declined by the worst print on record of a 32.9% annualized rate. Concerns regarding demand destruction are reemerging as new corona cases continue to surge globally as producers are set to increase output. OPEC+ are set to increase output of about 1.5 million barrels a day in August, easing some of the supply restrictions. This comes amid the largest one week decline in oil stocks since December, according to the EIA. Global economic outlook appears to be fleeting (once again) amid increasing infections as demand plateaus, which coupled with more supply coming back online may test near term market sentiment. The market remains bullish trend with today’s range seen between 39.47 – 42.40.

Crude Oil Sep ’20 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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