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Crude oil regains some ground – TDS

Crude oil’s resilience has seen Commodity Trading Advisors (CTAs) add back their notable length on WTI. TDS analysts note that the impact on oil supply from Hurricane Beryl was less than expected.

CTAs again add their remarkable length in WTI

“Crude oil’s resilience has seen CTAs add back their notable length in WTI, and for now, these funds are likely to hold their position unless prices fall below the key $80/bbl region, which has held strong since the resurgence of the supply risk premium linked to tensions in the Middle East and an early start to what experts suggest will be a busy hurricane season.”

“However, that said, we note that the risk premium associated with tensions in the Middle East tends to erode quickly without an escalation into a broader conflict, and with systematic flows reaching elevated long-term levels, the lack of persistent buying will likely weigh on the market soon if the risk premium declines.”

“Meanwhile, the impact on oil supply from Hurricane Beryl was less than expected, adding further downward pressure on the market.”

Source: Fx Street

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