Oil prices are moving lower on Thursday amidst the landfall of Hurricane Laura in the Gulf of Mexico shutting down oil rigs and refineries. On Tuesday, oil producers had shut down nearly 84% of the Gulf’s production or removed about 1.5 million barrels a day. However, don’t expect this disruption in supply to be longstanding as oil and gasoline stocks remain well above year ago levels. However, to note crude oil stocks have declined nearly 25 million barrels over the last 5 weeks with US exports reaching a 15-week high this week, which should help underpin prices. Gasoline stocks fell and refiners increased production to the highest rate since March, according to the EIA. Expect any disruptions in supply to be temporary with renewed focus on demand prospects. The market remains bullish trend with today’s range seen between 41.88 – 43.85.

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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