Oil prices have lost some of their momentum in the early session but are poised to end the week on a five-week high amidst support from output shutdowns in the Gulf as well as the prospect of supply losses in Norway due to a labor strike. Norway’s production is expected to take a 25% cut resulting in the loss of nearly 1 million barrels per day. These production losses helped in part to ease ongoing concerns regarding demand as well increased corona cases.  This comes as OPEC on Thursday stated at its annual World Oil Outlook that it had downwardly revised its demand prospects for global growth over the long term, suggesting that demand will plateau into the late 2030s. Weekly inventories did little in providing support as inventories had a slight increase as expected. Remain cautious on the volatility of oil (OVX), which could ramp up to the 50s in the near term. Oil prices have been teetering around the bull/bear line, which comes in around 41.90 but remains bearish trend with today’s range seen between  37.40 – 41.76.

Crude Oil Nov ’20 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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