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Analysts at TD Securities point out that the WTI crude oil specs heavily reduced positioning again last week, as investors continued to capitulate on their long positions.

Key Quotes

“Crude oil continued its aggressive descent lower amid news of record output from Saudi Arabia, further bearish macro sentiment and continued builds in US inventories. But, weakness could start to bottom out as it appears OPEC+ are committed to cutting production once again at their Dec 6th meeting, which should see the market tighten up.”

“Furthermore, seasonal inventory dynamics should start to see barrels draw again and sour macro sentiment is likely overblown “” as such, we anticipate that crude oil will begin to move closer to the fundamentals once again as we move into 2019.”