Will Cunliffe
Research Analyst, The Officials
Sun’s out, shorts on
The US SPR is becoming a liability, Asia now has more crude than it knows what to do with but product cracks remain elevated and when will C
The US SPR is becoming a liability, Asia now has more crude than it knows what to do with but product cracks remain elevated and when will China resume its crude purchases?
Prices keep grinding lower, with Brent down to around $77 this morning. The market is reading the OFAC permission on Iranian oil trading as an indication of peace progress. The market wants to believe in peace! Everyone is crowding short in Brent futures, according to CFTC money managers’ aggregate short positions which is near all-time highs! But although we are at historic highs for money manager short open interest, net length remains above the water line, just about...The Officials Research team also prepared a report on CTA positioning (see here), which indicates CTAs are likely getting increasingly short, though there still remains decent scope to get shorter! But this eventually creates a floor as the shorts need to cover!
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