Considering that the OPEC outcome, which on the whole was a surprise, petroleum prices have stayed relatively rangebound since the marketplace struggles the cross-currents of a stronger economic recovery using a resurgence of virus instances. Going back into the OPEC decision, a week petroleum ministers suddenly agreed to facilitate manufacturing curbs, which will see approximately 2.3mbpd back on line from today until July. This also comes in a time where big oil importers like India are seeing an increase in Covid cases. Thus, going forward, increased volatility is very likely to last for the crude petroleum industry.
1.4mln drawdown), that has kept oil prices stinks for today.
Geopolitical Risks: Another factor to consider is increasing health risks, which may increase the probability of short-term spikes in Brent and WTI crude stocks. Iran had previously confirmed that its own commercial boat in the Red Sea was slightly damaged by an explosion. Elsewhere, a current step-up from the Russian army checks around boundaries of the Ukraine have gained attention in recent sessions, leading to notable weakness at the Russian Rouble, however as tensions start to rise, oil prices might be subject to a bout of volatility.
Retail dealer data reveals 67.78% of dealers are net-long using the proportion of traders extended to brief at 2.10 to 1. The amount of dealers net-long is 6.69percent lower compared to yesterday and 13.39% higher from last week, even whereas the amount of dealers net-short is 7.11% greater than yesterday and 7.27% reduced from previous week.
We typically have a contrarian perspective to audience sentiment, and also the truth that traders are net-long indicates petroleum - US Crude prices will continue to drop.
Positioning is not as net-long than yesterday however more net-long from a week. The blend of present sentiment and current changes gives us an additional combined Oil - US Crude trading bias.