Oil prices are poised for the largest weekly gain since June as a meeting of OPEC+ yesterday urged ‘full conformity and compensating overproduced volumes’ amidst a fleeting recovery in global demand. This comes as Libya is expected to increase production and allow exports to resume as the country is currently pumping just 80k barrels a day while producing 1.2 million a day last year. WTI front month has come back over $41 dollars a barrel buoyed by a softer dollar as well as an unexpected weekly decline in inventories. In addition, Russian Energy Minister noted an expectation of a near full demand recovery by the second quarter of next year. Notwithstanding, recent projections of slowing Chinese demand from June and July add to the already grim outlook for global demand. Oil has now transitioned to neutral trend but look to position with a bearish tilt with today’s range seen between 35.16 – 41.49.

Crude Oil Nov ’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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