Ironically, the support price in crude oil has probably decreased as a result of war. While the battle lines remain as they are, the downward pressures in crude oil will grow regardless of whether the fire is kept or not: mutually assured economic destruction seems unlikely, says Daniel Ghald, senior strata of TDS raw materials.
Long discretionary positions at risk in oil markets
“In the last sessions, the estimated CTA flows reached one of their highest registered levels: the algorithms sold a colossus -50% of their maximum size in a single session. Now, the CTA will only sell an additional -5% of their maximum size below 64.45 $/BBL in crude oil WTI, and in fact we could see some brief smaller movements.”
“This suggests that the phase of falling mass sale has been completed mostly, but at the same time, our advanced positioning analysis suggests that discretionary money managers were maintaining long positions in the middle of the war, which could point out a greater margin for exits. Supply and demand remain unbalanced, particularly after the summer months.”
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.
