Traders Are Selling, But Higher Oil Prices Could Be On The Horizon | OilPrice.com

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Traders Are Selling, But Higher Oil Prices Could Be On The Horizon | OilPrice.com
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Sentiment in the oil markets has deteriorated in recent weeks, but analysts also note that oil market fundamentals are far more supportive this time than they were in early 2020

Energy Select Sector SPDR ETFThankfully for the bulls, StanChart says very little of the latest fall in open interest is due to the active opening of new short positions; rather, it is primarily due to the closing out of existing longs.

As such, StanChart believes that all this closing out of longs is due primarily to the market now abandoning these views, along with traders reducing risky positions before the end of the year. StanChart says its money-manager positioning index for heating oil fell 25.3 w/w to -10.5, that for gasoline fell 25.7 w/w to -34.2 while that for gasoil fell 14.8 w/w to -24.4. Overall, the analysts say positioning is now much less distorted than it has been for a while, which is a good thing because short-term risk-reward is now skewed towards higher prices.

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Why Oil Traders Are Wary Of Buying Crude | OilPrice.comWhy Oil Traders Are Wary Of Buying Crude | OilPrice.comOil traders remained net short on crude at the beginning of December despite improving fundamentals
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