Middle East tensions drive the oil market upside – TDS
|Oil market upside was being driven by supply side risk tied to boiling Middle East tensions, and the rally was extended via Commodity Trading Advisor (CTA) buying flows, TDS Senior Commodity Strategist Ryan McKay notes.
CTAs are set to sell 10% of their max WTI crude position
"Oil market upside was being driven by supply side risk tied to boiling Middle East tensions, and the rally was extended via CTA buying flows."
"However, 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. Indeed, CTAs are set to sell roughly 10% of their max WTI crude position, with the $80/bbl region serving as additional key selling levels."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.