• 4 minutes End of Sanction Waivers
  • 8 minutes Balancing Act---Sanctions, Venezuela, Trade War and Demand
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 14 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 7 hours Saudi Arabia Says To Coordinate With Other Producers To Ensure Adequate Oil Supply
  • 3 mins US Military Spends at least $81 Billion Protecting OPEC Persian Gulf Oil Shipping Lanes (16% DoD Budget)
  • 4 hours Overheating the Earth: High Temperatures Shortened Alaska’s Winter Weather
  • 10 hours Alliances: Iran And Pakistan To Form Joint Rapid Reaction Force At Border
  • 4 hours Populist Surge Coming in Europe's May Election
  • 1 hour "Undeniable" Shale Slowdown?
  • 4 hours Climate Change Protests
  • 4 hours China To Promote Using Wind Energy To Power Heating
  • 2 hours Gas Flaring
  • 1 hour Don't Climb Onto the $80+ Oil Price Greed Roller Coaster, Please.
  • 1 hour How many drilling sites are left in the Permian?
  • 2 hours O&G now in the Magical Goldilocks Zone of $70 Brent

Speculators Vulnerable To Short-Covering Rally

Friday June 30, 2017

In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers.

Let’s take a look.

1. Oil begins to rally on short covering


(Click to enlarge)

- Bearish bets on crude prices hit a record high, according to the most recent data.

- That suggests traders are incredibly pessimistic, betting on falling oil prices.

- But the preponderance of bearish bets risks a sharp short-covering rally. “The market is vulnerable to a very violent short-covering move,” Thibaut Remoundos, founder of Commodities Trading Corporation Ltd., told Bloomberg. In fact, that could be underway.

- Crude prices have gained more than 5 percent since bottoming out last week.

- There could be further gains in prices. All the while the selloff (and subsequent rally) had little to do with changes in fundamentals, and much more to do with shifts in market sentiment.

2. Oil industry in danger of wasting $2.3 trillion

(Click to enlarge)

- A report from Carbon Tracker Initiative estimates that the global oil industry is set to spend $2.3 trillion on oil projects that ultimately might not be needed if the world reaches peak oil demand by 2025.

- Demand scenarios vary depending on who you ask. Some…




Oilprice - The No. 1 Source for Oil & Energy News