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13 Apr 2015
Specs calling for a bottom in oil prices – ANZ
FXStreet (Barcelona) - Paul Deane, Senior Commodity Strategist at ANZ, believes that the recent positioning data implies that specs are calling for a bottom in oil price, increasing their net bullish positions on the commodity, but any rally will be stay limited.
Key Quotes
“Crude oil prices gained. Speculative market participants appear to be calling for a bottom in oil prices, with the largest weekly gain in non-commercial net long (bullish) positions in the US futures market since 2011.”
“Although there are tentative signs of demand improving and rig counts fell to the lowest level since 2010, an ongoing global market surplus – driven by swelling US inventories (the biggest weekly jump since March 2001) and Saudi Arabian output to record high levels – should limit any potential rally.”
Key Quotes
“Crude oil prices gained. Speculative market participants appear to be calling for a bottom in oil prices, with the largest weekly gain in non-commercial net long (bullish) positions in the US futures market since 2011.”
“Although there are tentative signs of demand improving and rig counts fell to the lowest level since 2010, an ongoing global market surplus – driven by swelling US inventories (the biggest weekly jump since March 2001) and Saudi Arabian output to record high levels – should limit any potential rally.”