• 4 minutes Why Trump will win the wall fight
  • 9 minutes Climate Change: A Summer of Storms and Smog Is Coming
  • 12 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 11 hours is climate change a hoax? $2 Trillion/year worth of programs intended to be handed out by politicians and bureaucrats?
  • 36 mins Ayn Rand Was Right
  • 5 mins Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 21 mins Oil imports by countries
  • 2 hours Sanctions or Support: Despite Sanctions, Iran's Oil Exports Rise In Early 2019
  • 54 mins NZ Oil, Gas Ban Could Cost $30 Bln
  • 4 hours Solar and Wind Will Not "Save" the Climate
  • 2 hours Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 22 hours Some Good News on Climate Change Maybe
  • 14 hours Regular Gas dropped to $2.21 per gallon today
  • 21 hours Expected Breakdown: Israel-Central Europe Summit Canceled After Polish Pullout
ZeroHedge

ZeroHedge

The leading economics blog online covering financial issues, geopolitics and trading.

More Info

Trending Discussions

Oil Flies To 3-Week High Sees Biggest Surge In Open Interest In 10 Years

WTI is now up 14% from its lows last week, with Sept 2016 trading back above $44.50 at 3-week highs.

Oil's rapid OPEC-headline-driven recovery continues...

(Click to enlarge)

Despite rising inventories (and record production levels in OPEC), the Saudi statement hope remains and prompted the biggest spike in WTI Open Interest since August 2006 yesterday!

(Click to enlarge)

As Bloomberg notes this is the highest level of aggregate open interest since 2013 with volumes above 1mm for the 7th session in a row.

This was a signal of the addition of length and more than just short covering, according to Petromatrix analyst Olivier Jakob.

Increases driven by reported comments yesterday from Saudi Arabian oil minister Al Falih about balancing markets, says Eugen Weinberg, head of commodities research at Commerzbank

This "is a big increase,” Petromatrix analyst Olivier Jakob says by phone. “Based on that, it’s difficult to say that the rally of yesterday was just short covering, it points to the opposite, fresh longs and shorts coming into the market”

Bloomberg also points out that WTI front month 25-delta skew jumped to utmost 'bullish' biased since November...

WTI Call volume is highest relative to put volume (demand) since Nov 2015...

(Click to enlarge)

Of course, that is "probably nothing" but we suspect the last few days sudden spike in prices and aggregate positioning are a little excessive relative to any fundamentals...

“The contracts have recovered well but be careful,” PVM Oil Associates director Robin Bieber writes in a note.

“The speed and size of the reaction up should make one very cautious at the 34-day MAs. They’ve spoilt plenty of bullish parties before”

By Zerohedge

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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