How Far Can Brent and WTI Rally Go?

Another week of rising oil price and another record for money manager bets on gains. But can it last?With wagers on rising West Texas Intermediate and Brent crude futures mounting to new highs and the global benchmark hurtling through $70 in the face of depleting stockpiles, the bulls seem to have control of the market. But, warnings of a retreat are coming into view.

The Organization of Petroleum Exporting Countries is committed to keeping its output curbs in place for the rest of year, United Arab Emirates Energy Minister Suhail Al Mazrouei said last week. The U.S. supply picture has shown shrinking inventories, with storage at Cushing, Oklahoma below the five-year average.

Source: Record Betting on Oil’s Rally Begs Question: How Far Can It Go? – Bloomberg

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This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.