Oil prices are moving lower here in the early session on Friday as increased lockdowns and a surge in cases in Europe and the US have continued to weigh on global demand prospects with additional anxiety related to the drawn-out vote counting in the US election. OPEC+ are considering a differed increase in oil output in January as a ‘second’ wave would continue to add to the already fragile outlook in fuel demand. OPEC+ are set to ease output cuts by 2.2 million bpd in January from the current 7.7 million bpd. Both benchmarks extended gains earlier in the week after weekly US crude inventories fell sharply to a 30-week low, however, the draw was largely attributed to production shutdowns in the Gulf. Oil volatility (OVX) continues to remain elevated with the market remaining bearish trend with today’s range seen between 35.23 – 40.27.

Crude Oil Dec ’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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