The crude Wti and Brent rose out of fears of sanctions and a strong purchase of CTA, but the positioning limits in WTI and the increase in the global offer suggest a limited bullish potential. Prices can decrease after summer as the production of Opec+ and the US continues to grow, says Daniel Ghald, senior strategist of TDS Commodities.
Opec+ and USA’s offer will limit oil gains
“The threat of secondary sanctions on the Russian crude supported the prices of the WTI and the Brent in the last session. However, this price action was reinforced by a large -scale CTA purchase activity. The algorithms have now reached their position size ‘Max Long’ in WTI, limiting the scope for more tickets, although this group still has some bullets more than shooting in the oil Brent.”
“We are still waiting for prices to decrease after summer, due to the continuous additions of the Opec+offer, along with our expectations of a US offer growth more resistant than expected after the war between Israel and Iran.”
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.
