Oil market turns to the upside – TDS
|Oil market upside is being driven by Commodity Trading Advisors (CTA) flows yet again, TD Securities Senior Commodity Strategist Ryan McKay notes.
Crude oil is back on the rise
“Systematic flows have reignited in WTI crude, with funds looking to add a whopping +17% of their historic max length, and they could add more if the rally extends beyond $85.45/bbl.”
“Brent crude is also seeing a large scale +12% of max length added, although CTAs are now firing long on all cylinders and could see modest reductions to their length below $87.03/bbl.”
“CTAs have covered their recently acquired RBOB gasoline shorts, with funds now sitting flat heading into driving season. However, downside triggers are closer to market amid weaker demand statistics and large inventory builds that have thus far bucked the typical seasonal pattern.”
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