CTAs will proceed to promote crude and industrial metals (x-copper) in most eventualities for costs by this time subsequent week. Within the imminent time period, CTA promoting exercise will proceed to weigh on value motion into the OPEC assembly, TDS’ Senior Commodity Strategist Daniel Ghali notes.
Power demand stays resilient
“Whereas markets will battle to soak up extra barrels from OPEC+, vitality demand stays resilient, US shale manufacturing is peaking, Venezuelan export licenses have expired, and geopolitical dangers surrounding Iran stay elevated— all of which can doubtless act as a shock absorber to decrease costs in the meanwhile.”
“Past the seasonally robust summer season months, nevertheless, OPEC exports ought to rise additional and stress world crude markets with no subsequent disruption to produce. The trail to sustainably increased costs stays extraordinarily slim, and whereas speculative positioning is bearish, it isn’t at the moment weak to a squeeze.”
