CRUDE OIL REGAINS SOME TRACK – TDS
Crude oil's resilience has seen Commodity Trading Advisors (CTAs) add back their notable length in WTI. The impact to oil supply from hurricane Beryl was less than expected, TDS analysts note.
CTAs add back their notable length in WTI
“Crude oil's resilience has seen CTAs add back their notable length in WTI, and for now, it is likely these funds will hold onto their position unless prices sink below the key $80/bbl region which has held strong since the revival of the supply risk premia tied to Middle East tensions and an early start to what experts are suggesting will be a busy hurricane season.”
“However, with that said, we highlight that the risk premia associated with Middle East tensions tends to quickly erode without an escalation to a broader conflict, and with systematic flows hitting elevated long levels, the lack of persistent buying is likely to soon weigh on the market should the risk premia ease.”
“Meanwhile, the impact to oil supply from hurricane Beryl was less than expected, adding further downward pressure to the market.”
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