Monday, August 22, 2016

Hedge Funds vs. the Hedgers

When it comes to excitement WTI pretty much wins. Between geopolitics, currency sensitivity, refinery economics, seasonality, and consumer behavior you're talkin never a dull minute.

Recent spec short covering by hedge funds, ignited by freeze talk and USD weakness is finally meeting producer hedging with Q 17 hitting 53 Friday. John Kemp at Reuters reports,
" Hedge funds had established a record short position of 220 million barrels in NYMEX WTI by Aug. 9, but this was followed by a record one-week 54 million barrel reduction in short positions by Aug. 16."

 So right now it's the Hedge Funds vs. the Hedgers and it s not at all clear who s going to be triumphant (Que Olympic theme)
Bulls want to see 48.55 taken out, the 50 % retrace and overlap of a previous low.


Bears want to see 46.46 penetrated.



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