Oil markets are now succumbing to a reversal of systematic flows, notes Ryan McKay, Senior Commodities Strategist at TDS.
The upside is likely limited for WTI
“Commodity Trading Advisors (CTAs) could remain modest short-term buyers in Brent crude, but WTI would need to see a price rebound above $82.50/bbl to renew bullish flows.”
“However, we do not anticipate another drop in prices as supply risks come back into focus with tensions rising in the Middle East between Israel and Lebanon, while fresh attacks on ships in the Red Sea reignite concerns. “
“A renewed rise in our energy supply risk indicator may support near-term price action, but ultimately we continue to argue that the upside is likely limited by rising global supply and potential OPEC+ increases. , which calls into question the 2025 balances.”
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.
