RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Oil prices have rebounded off their Thursday low following a greater than expected draw in both oil and gasoline inventories. Oil inventories fell -6.9 million barrels for the seventh consecutive week with gasoline inventories falling l -6.1 million barrels despite a refinery utilization rate of 92.2%, suggesting strong domestic demand ahead, according to the EIA. This comes amidst a fallout in discussion within OPEC+ as the market continues to assess global oil supplies with disagreements regarding output between Saudi Arabia and the United Arab Emirates continuing to persist with a third of UAE’s production now sitting idle – more than any other OPEC+ nation. This is coupled with the prospect of more Iranian oil coming back online as economic sanctions could potentially be lifted in exchange for nuclear restrictions.  Concerns regarding a resurgence of the coronavirus and the Delta variant remain as Japan declared a state of emergency prior to the start of the Olympic games. The market remains bullish trend with today’s range seen between 71.49 – 75.85.

Crude Oil Aug ’21 Daily Chart

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Alexander 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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