SaxoTV

Hansen: Why the price of crude could be in for a correction

714 views
April 28, 2015 brent, brent crude, brent geo-political, brent oil, brent price, brent spread, brent wti, brent wti spread, commodites, commodities, commodities markets, commodities prices, commodities supply, commodities trading, commodity, commodity index, commodity investing, commodity market, commodity markets, commodity outlook, commodity prices, commodity strategy, commodity trade, commodity trading, crude, crude oil, crude oil price, crude oil prices, crude price, crude prices, crude spread, crudeoil, geo political, geo-political, geopolitical, geopolitical tensions, geopolitics, hedge, hedge fund, hedge funds, hedgefunds, oil, oil and gas, oil commodities, oil consumer, oil demand, oil drop, oil gains, oil industry, oil inventories, oil market, oil markets, oil news, oil price, oil prices, oil production, oil range, oil refinery, oil spread, oil stockpiles, oil stocks, oil supplies, oil supply, oil trading, oil wealth, oilsupply, saxo, saxo bank, saxo tv, speculation, speculators, supplies, supply, supply growth, support, support levels, trading, tradingfloor, tradingfloor.com, wti, wti and oil, wti brent, wti brent spread, wti crude, wti crude oil, wti price, wti supply, wti vs brent, wticrude, yemen
Speculative bets on rising Brent crude oil prices are at an all-time high. By April 21st net-longs jumped by 8,351 lots to 271,929. Saxo's Ole Hansen says the reasons are two-fold: supplies are flattening out and geopolitical risk associated with Yemen has added some support.

But is this really the recovery the markets have been waiting for? Hansen cautions that in the near-term the market may have reached a level where there's a danger it needs to correct itself. 

He says #SaxoStrats has just issued a June 15 put spread on WTI (read it here) because of the belief it could be running out of steam. As for Brent, Ole says momentum is still positive so those holding longs should stay put BUT keep a sharp eye on the levels, in case their's a move to the downside.