Oil has been strong despite bearish supply headlines. Larger inventories off set by record US exports. Positive tone with trade war talks is off set today by Trump’s Tweet “OPEC should relax and take it easy” pressuring price on the open today. Oil prices were supported last week after Mexican National Oil CO. reported lowest ever production. Lower rig counts in Baker Hughes and Canadian rigs also helped support price. With the overall bearish fundamental data that has been reported the question for traders is how much will headlines matter? Current option pricing in 2.7 move in 18 days. Skew is favoring the put side. Calls and puts still active open interest continues to build on the 50 put and the 60 calls. 55 remains a key support level.
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