Could get a run here Short Squeeze, page-85

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JCoure

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09/06/20

12:16

Post #: 45110089
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Originally posted by pureau: ↑

Buying of WTI crude oil extended into a 9th week with funds adding 17k lots to bring the net-long to 380k lots or 380 million barrels, the highest since July 2018. Short sellers added small length for a second week thereby keeping the long/short ratio steady. The Brent crude oil net-long saw a small reduction as short-sellers added length for the first time since March. Despite dropping by almost 9% the natural gas long was kept close to unchanged with both long and short positions rising.OPEC and its oil-producing allies agreed on Saturday to extend the group’s historic 9.7 million barrels/day production cut by one month to the end of July. As we highlighted in our latest update the risk of failure, despite concerns about non-compliance from a handful of producers, was limited given the need to support the price while lockdowns are eased and demand recover. A recovery that potentially risks being slower than the market expects due to the risk of second waves.According to the latest weekly EIA report, demand for distillates in the US, which is mainly diesel, hit a 1999 low some 30% below the five-year average. Gasoline demand meanwhile has recovered but was 1.9 million barrels/day or 25% below the average for this time of year. With the deal having been all but priced in ahead of the meetings the risk to crude oil remains balanced. Speculative momentum may see both WTI and Brent take aim at closing the gaps to $41.05/b and $45.18/b respectively.However much higher prices at this early stage in the recovery carries the risk of becoming self defeating as it invites back increased production from high cost producers, not least along the US shale patch. The market may soon also begin to focus on rising production after July from core OPEC members while Libya is showing signs of returning production. I.m.h.o
there is no doubt that the low prices seen previously will not reoccur anytime soon. Saudis and russians have made up and markets will stablize moving forward. Sxy is kicking goals and we may well be on the way to becoming the next Bpt. Gltah...

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Bit subdued with the SXY trades 2 hours after the open. perhaps SXY traders are still recovering after their long weekend Abbott holiday.

POO is up, global recovery seems quicker than expected, NZ back to normal, when will the traders wake up? And the buy to sell ratio is about 4:1.

SXY Price at posting: 27.5¢ Sentiment: Buy Disclosure: Held
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