Crude Oil Price News and Forecast: WTI pulls back to $58.35 amid a lack of fresh catalysts
|WTI: Taking profits on short spread
The TD Securities Commodity Strategists provide a strategy on trading WTI short spread amid expectations of oversupply starting out 2020.
Key Quotes: “We previously entered a short WTI Mar-Jun spread trade at $1.15/bbl, as we expected oversupply in the first half of 2020 to see front end spreads return to contango. In the aftermath of the US-Iran tensions, the spreads reacted aggressively in our favor as bearish US inventory stats raised demand concerns once again.
WTI pulls back to $58.35 amid a lack of fresh catalysts
WTI bounces off to $58.35 during early Wednesday. In doing so, the black gold disturbs the previous two-day declines while taking clues from the second-tier news from the Middle East amid a lack of major data/events elsewhere.
The oil benchmark has been bearing the burden of strong US dollar and doubts over the global recovery, as spread through the International Monetary Fund’s (IMF) latest forecast. Also supporting the energy benchmark’s declines were receding odds of the US-Iran war and softening tension in Iraq.
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