The bullish sentiment in crude was short-lived as money managers reverted to getting shorter in the crude futures benchmarks in the week ending 20 August. Sentiment in crude futures has become increasingly bearish on a combination of factors. The geopolitical risk premium has evaporated as markets react to positive progress towards a ceasefire deal between Israel-Hamas, whilst assessing no imminent threat to oil production, transportation, and infrastructure in the region. China’s economic troubles have played a significant role, with both OPEC and the IEA revising down their global oil demand growth projections, citing the impact of a weakened economy on oil consumption.
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