CTAs may still sell more WTI crude this session – TDS

Quiet markets have resulted in substantial price impacts from the recent whipsaws in Commodity Trading Advisor (CTA) positioning, Senior Commodity Strategist Daniel Ghali notes.
Prices are staging a recovery
“Massive algo buying activity at the turn of the week morphed into large-scale selling activity. Prices are staging a recovery this morning, but under the hood, the combination of likely CTA selling, a renewed slump in energy supply risk premia and deteriorating commodity demand sentiment still point to lower prices.”
“CTAs could sell up to -12% of their max size as they completely liquidate recent longs and build a net short.”
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FXStreet Insights Team
FXStreet
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