In today’s data driven environment every day feels like a judgement day. Two of the three monthly findings on oil balance, as discussed in the main topic of this note, warranted a decent rally but the market was understandably cautious and pragmatic ahead of today’s Chinese and US inflation reports.
After oil prices experienced a bearish confluence of events, shook out much length and toyed with being oversold, there is almost an inevitability in the rally back to current levels.
Any fund manager worth his or her salt would confess that the three most significant factors they follow and the ones that have profound impact on the formation of oil prices are the underlying fundamental backdrop, which includes macroeconomic developments, the technical state of the oil complex and finally, positioning, which mirrors the views of money managers.
Copyright © 2024 TP ICAP