• 4 minute Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 8 minutes Could oil demand collapse rapidly? Yup, sure could.
  • 15 minutes Oil and Trade War
  • 1 hour Could oil demand collapse rapidly? Yup, sure could.
  • 7 hours Oil prices going down
  • 1 hour Are EVs Safer Than Combustion Engine Vehicles?
  • 4 hours Migrants: Italy Wants EU Border Agency In Africa, Not At Sea
  • 47 mins What If Canada Had Wind and Not Oilsands?
  • 11 hours Sabotage at Tesla
  • 19 hours Oil and Trade War
  • 15 hours The Wonderful U.S. Oil Trade Deficit with Canada
  • 18 hours Germany Orders Daimler to Recall 774,000 Diesel Cars in Europe
  • 7 hours After Three Decade Macedonia End Dispute With Greece, new name: the Republic of Northern Macedonia
  • 4 hours Sell out now or hold on?
  • 6 hours Trump Hits China With Tariffs On $50 Billion Of Goods
  • 5 hours Nopec Sherman act legislation
  • 7 hours The Irrelevance Of BTU Rating - Big Oil's Gimmick To Hoodwink The Public
  • 19 hours venezuala oil crisis
  • 19 hours When will oil demand start declining due to EVs?
Alt Text

Did OPEC Need To Cut Oil Output At All?

Global oil demand continues to…

Alt Text

Oil Falls On OPEC Uncertainty

Oil prices seesawed for most…

Editorial Dept

Editorial Dept

More Info

Trending Discussions

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…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





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