Supply risks are back in the spotlight for crude oil with tensions rising in the Middle East between Israel and Lebanon, while fresh attacks on ships in the Red Sea reignite concerns, commodity strategists say of TD Securities.
Crude oil is back in the bidding
“This comes at a time when algorithmic flows had already been supporting the market following the OPEC+-driven sell-off, and the firm price action has seen Commodity Trading Advisors (CTAs) return to bidding in WTI crude oil.”
“A further rise in our Power Supply Risk indicator may continue to support near-term price action, however the bar is rising for algorithmic flows to continue.”
“We still argue that the rally could begin to fade as CTA buying flows slow. In fact, prices below $81.92/bbl would halt WTI buying, and prices just below $81/bbl would see funds to begin liquidating the length.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
