Oil prices are starting to come off their steep surge on Thursday following a 24.4% collapse on Wednesday as prices have been weighing supply and demand prospects. With demand forecasts slumping and tensions between Saudi Arabia and Russia escalating following the failed OPEC meeting in early March, prices have now slid nearly 60% this year. President Trump noted that the US could intervene in this ongoing price war, which contributed to yesterday’s gains. Meanwhile, OPEC production cuts are set to expire at the end of the month. Saudi’s Aramco has output at a record 12.3 million barrels over the coming months, however, both Saudi Arabia and Iraq cut rebates on freight costs, effectively lifting prices. Look to short bounces at/near top end of the range as the market remains bearish trend with today’s range seen between 21.29 – 30.34.

Crude Oil May ’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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